Paper Information

Journal:   IRANIAN JOURNAL OF APPLIED ECONOMICS   summer 2017 , Volume 7 , Number 21 #r00448; Page(s) 63 To 74.
 
Paper: 

The Effect of Government Health Expenditures on Economic Growth in Selected Countries of Middle East & North Africa (MENA)

 
 
Author(s):  ASADI MANIJEH, nikooghadam masoud*, HARATI JAVAD
 
* University of Bojnord, Iran
 
Abstract: 
Health through increasing the ability of national human force has an important effect on economic growth. Promoting health breeds more healthy and productive people. Hence, one of the important issues that governments are facing is the share of health expenditure allocated to the health sector. In this paper, using panel data, the effect of Government health expenditure on the economic growth of the selected countries of the MENA region (including Iran, Algeria, Palestine, Jordan, Lebanon, Cyprus, Egypt, Morocco and Turkey) has been examined over the period 1995-2014. The results indicate that a one-percent increase in each of the variables of government health expenditure, life expectancy, and gross fixed capital formation has led to increase the economic growth of these countries by 0. 02%, 0. 02%, and 0. 31%, respectively. Also, a one-percent increase in the population growth rate has decreased their economic growth by 0. 01 percent. Therefore, with respect to the positive effect of government health expenditure on the economic growth, it is recommended that the MENA countries’ economic planners take account this type of expenditures as an investment instead of a cost. In addition, they can perform effectively in the process of economic growth by adopting appropriate policies and investment prioritizing in the health sector.
 
Keyword(s): Health through increasing the ability of national human force has an important effect on economic growth.Promoting health breeds more healthy and productive people.Hence,one of the important issues that governments are facing is the share of health expenditure allocated to the health sector.In this paper,using panel data,the effect of Government health expenditure on the economic growth of the selected countries of the MENA region (including Iran,Algeria,Palestine,Jordan,Lebanon,Cyprus,Egypt,Morocco and Turkey) has been examined over the period 1995-2014.The results indicate that a one-percent increase in each of the variables of government health expenditure,life expectancy,and gross fixed capital formation has led to increase the economic growth of these countries by 0.02%,0.02%,and 0.31%,respectively.Also,a one-percent increase in the population growth rate has decreased their economic growth by 0.01 percent.Therefore,with respect to the positive effect of government health expenditure on the economic growth,it is recommended that the MENA countries’economic planners take account this type of expenditures as an investment instead of a cost.In addition,they can perform effectively in the process of economic growth by adopting appropriate policies and investment prioritizing in the health sector.
 
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