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Implication of E-Health and IT Governance on Healthcare Expenditure: An Econometrics Approach (Case Study Middle East Countries)

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  • Seyed Shahabeddin Sadr

    (Tehran University of Medical Sciences, Tehran, Iran)

  • Seyed Mohammad Hossein Sadr

    (Department of Management and Accounting, University of Allame Tabataba'I (ATU), Tehran, Iran)

  • Yazdan Gudarzi Farahani

    (Faculty of Economics, University of Tehran, Tehran, Iran)

Abstract

This paper analyzes the public healthcare expenditure of Middle Eastern countries in relation to different exogenous explanatory variables, through a panel study involving twelve (12) Middle East countries. More specifically, the study methodology uses panel cointegration, and panel-based error correction models derived from annual data covering the period of 2000 to 2010. The empirical results support a short-run co-integration relationship after allowing for the heterogeneous country effect. The long-run relationship is estimated using a full-modified OLS. The results of a ten-year panel study have been interpreted and commented. The public healthcare expenditure of our countries is explicated to a great extent by the single country GDP. Other strong correlation variables were found also to be statistically significant. The research reveals that e-health programming and e-health governance could lead to a decrease in unnecessary health care expenditure.

Suggested Citation

  • Seyed Shahabeddin Sadr & Seyed Mohammad Hossein Sadr & Yazdan Gudarzi Farahani, 2013. "Implication of E-Health and IT Governance on Healthcare Expenditure: An Econometrics Approach (Case Study Middle East Countries)," International Journal of Healthcare Information Systems and Informatics (IJHISI), IGI Global, vol. 8(2), pages 58-69, April.
    • Handle: RePEc:igg:jhisi0:v:8:y:2013:i:2:p:58-69
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