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Health Expenditure and Economic growth: An ARDL Approach for the Case of Iran

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  • Mohsen Mehrara
  • Maysam Musai

Abstract

This paper examines the relationship between health expenditure and economic growth in Iran for the period 1970-2007, based on the autoregressive distributed lag (ARDL) approach. The study finds a cointegrating relationship among real GDP, health expenditure, capital stock, oil revenues and education, although among them, health spending explains just a small part of the economic growth. The results indicate that while health care expenditures are among the most important factors in the lowering of infant mortality, they do not make a significant marginal contribution to the economic growth in Iran. This findings call for pressing reforms and improved allocation of resources in health sector.

Suggested Citation

  • Mohsen Mehrara & Maysam Musai, 2011. "Health Expenditure and Economic growth: An ARDL Approach for the Case of Iran," Journal of Economics and Behavioral Studies, AMH International, vol. 3(4), pages 249-256, October.
    • Handle: RePEc:rnd:arjebs:v:3:y:2011:i:4:id:2304
    DOI: 10.22610/jebs.v3i4.277
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