Volume 7, Issue 4 (9-2022)                   hrjbaq 2022, 7(4): 332-345 | Back to browse issues page

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Fatholahi E. The Long-Term Impact of Health Expenditure on Health Status in Iranian Provinces: An Empirical Evaluation Using Panel Data Analysis. hrjbaq 2022; 7 (4) :332-345
URL: http://hrjbaq.ir/article-1-602-en.html
Department of Economics, Faculty of Administrative Sciences and Economics, Lorestan University, Iran , (elham.fatholahi@yahoo.com)
Abstract:   (139 Views)

Introduction: Health is one of the important economic sectors of the country and is usually under public control. This means that the health system can sometimes be used by governments as a tool in economic policies. Healthcare costs are an integral part of the economy and significantly contribute to economic development. Healthcare costs improve human capital. However, developing countries often pay less attention to health expenditures in the annual national budget. Therefore, improving investment in health care is an important and necessary matter in the development agenda of every country.
Materials and Methods: The present study is an attempt to investigate the long-term relationship between health expenditure and mortality rate as one of the health indicators in the provinces of Iran during the period 2015 to 2018. Mortality rates are modeled as a function of health expenditures, women's educational status, GDP per capita, and urbanization. To achieve this goal, in this research, Kao, Pedroni and Westerland cointegration test and subsequently fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) methods were used to estimate the long-term relationship. Also, Eviews 10 and Stata 17 software were used to estimate the relationship and the tests performed.
Results: The results of this study indicate that health costs per capita, health status and urbanization in both FMOLS and DOLS models cause an increase in the population mortality rate in the provinces of the country by 0.093, 0.046, 0.09, 2.09, respectively. 38, 4.84 and 5.06 units. Among the mentioned variables, the health status and urbanization have a significant effect on increasing the death rate in the provinces. Also, the results showed that the GDP per capita and the educational status of women also have a significant effect on reducing the mortality rate, so that an increase of one unit in each of the variables mentioned in the two estimation models causes a decrease of 2.61 and 95.95, respectively. 1, 4.01 and 0.664 units in the death rate of the provinces. In addition, the results of this study shed light on the determinants of health expenditures such as GDP per capita, women's education, health, and urbanization, which have clear policy implications for reducing mortality rates among Iranian provinces.
Conclusion: Based on the findings of the research, the government should prioritize health expenses by increasing the share of public health expenses as a fair share in each province in order to improve the health status and immunization coverage through the health level. In addition, the government should implement measures to improve income through economic growth and increase resources for women's education. Analyzes show that these measures can lead to improved health outcomes in Iran. However, the per capita health costs in the study period of this research have caused a decrease in the overall health of the population. The government and policy makers should pay special attention to the healthcare sector in the country's economy and promote the health of the society by allocating the available and sufficient resources for this sector and providing health and non-health services and facilities for the country's population. Therefore, one of the main goals of the health system should be increasing productivity and proper use of existing facilities.

Author Contribution: All was done by Elham Fatholahi.
Conflict of Interest/Funding/Supports: The author declares that there is no conflict of interest.
Ethical Considerations: All ethical concerns were respected in this study.
Applicable Remarks: Learning about health spending imposes on society. It is socioeconomically very important and can influence the decision-making of health policy makers.


Article number: 8
Full-Text [PDF 1499 kb]   (40 Downloads)    
Type of Study: Research | Subject: Special
Received: 2022/07/21 | Revised: 2022/11/2 | Accepted: 2022/09/21 | ePublished ahead of print: 2022/10/2 | Published: 2022/11/2

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