Sports industry can helpe significantly the economy in a country as it creates direct and indirect economic development. The purpose of this study was to estimate the economic impact of sports industry in Iran in 1998 and 2001, to help demonstrate the value of the sports sector in Iran via ‘expenditure method”. In order to identify the relationship between sports and national economy, we collected household and government expenditure on sport, investment and sporting goods exports and imports. Our results indicated that the sport share of GDP is 0.38% in 1998 and 0.39% in 2001. Sport expenditure in Iran was very low, about 0.22% in 1998 and 0.06% in 2001 and sport export was also little, about 0.04$ in 1998 and 0.06% in 2001. However, sport economic development was very low in sports industry of Iran, but GDSP was higher than the growth in the whole economy (GDF). GDSP and GDP showed an increase of about 64.72% and 61.50% respectively.
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