. Mohsen Pakdaman; . Sara Geravandi; . Roohollah Askari; . Mohsen Askarishahi; . Hasan Reza Afzali
Volume 9, Issue 6 , June 2019, , Pages 1-6
Abstract
INTRODUCTION: A sharp increase in expenditure is one of the challenges of the health systemin Iran. Every macroeconomic variable affects health, and if it is disregarded, it will lead ...
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INTRODUCTION: A sharp increase in expenditure is one of the challenges of the health systemin Iran. Every macroeconomic variable affects health, and if it is disregarded, it will lead to highermacrobudgets. Physical and mental health as well as the use of health services change accordingto the macroeconomic conditions and business cycles (boom and recession). The present studyaimed to determine the effect of macroeconomic indicators on health expenditure.METHODS: This study was descriptive analytical. The required data related to macroeconomicindicators and health expenditure in public and private sectors were collected during 1995–2014.The data were analyzed using the time series models in econometrics, Vector Auto Regression,and Granger causality technique.RESULTS: The results of this study indicated that health expenditure has a positive bilateralrelationship with gross domestic production (GDP), gross national production, national income,and national consumption. On the contrary, expenditure has a negative bilateral relationship withliquidity rate and inflation rate. In addition, budget deficit has a negative unilateral relationship withhealth expenditure while population rate has a positive unilateral relationship with health expenditure.CONCLUSION: The results of this study indicated the increase of health expenditure in Iran thatGDP is the most critical determining factor of health expenditure. In general, the total expenditure inthe health sector in the world increases when the countries become richer. In line with the increaseof resources, innovative financing methods and efficiency improvement are required for providingbasic health services in low‑income countries.
