| Abstract:
Introduction: Market failure in providing individual and social stock of health, or capital, cause exigency of government interference in these sectors. Therefore, providing a part of society’s needs in the field of health is one of the basic acts of government. It has been further argued that unless government intervenes, the provision of equity cannot be achieved.
Methods: The main purpose of the present study is to conduct a survey on effectiveness of governmental financial support of health sector in some Islamic Organization Countries (OIC) . Thus, we applied classical econometrics methods (including cross section and panel data) using data period of 1991-2005.
Results: Results show that government health expenditure has a positive and significant effect on various social indicators. In addition, it was shown that per capita income is one of the important determinants of health indicators (such as infant mortality and under-five mortality rate) . Adult’s literacy rate is one of the significant variables affecting health status; In other words the health and education sectors correlate to each other.
Conclusion: Studying the role of government in providing finance to the health sector and observation of its outcomes shows that we cannot condemn the priority of public sector in developing countries’ health sector. Moreover; achieving millennium development goals needs governmental financial support, specially in the field of health care.
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