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The purpose of this paper is introduing one endogenous growth model for analysis realation between rent - seeking and economic growth. while traditional models stressed the importence of labor and capital for economic growthendogenous growth models believe that institutional and structural arrangments play a key role in explaning economic growth.
There is a problem in dealing with emprical evidence effects of rent - seeking on economic growth- namely: measuring rent - seeking. This problem is caused, in emprical studies use different proxy for rent - seeking Variable.
In this paper is used of averge tarrif rate and goverment size for rent -seeking variable. The estimate of growth equation shows that rent -seeking had a negative effect on economic growth during 1960-2002 in Iran.
JEL Classification: D72, D79.