Abstract

The aim of current study is to investigate the effects of government and private health expenditure on Iran economic growth in 1968 to 2012. Identifying the influencing factors on economic growth is necessary and deeper researches are required. Based on conducted researches, the influencing factors on economic growth includehuman capital, a factor which has been effective on economic growth more than any other factors and besides this, physical and technological and work force can lead to increase gross domestic product of the country. In accomplished researches the effect of government and private expenditures on Iran economic growth has been investigated, based on this the variable of health expenditures has entered growth patterns which has a positive significant effect on Iran economic growth and econometric techniques and tools have been used in order to calculate it. Ultimately, it answers this questions that if there is a significant relationship between health expenditures and economic growth.

All concerned tension coefficients are in accordance with research hypothesis, GDP tension compared to LED is equal to 1.26 so if life expectancy at birth in Iran increases for one percent (almost 1.26 year) then economic growth will increase as 2.38 percent, LET tension or life expectancy at birth in Iran compared to HEG or government final consumption expenditure on healthcare is equal to 15% and shows that with 1 percent of increase in government final consumption expenditure on healthcare, life expectancy will increase almost 15%, LET tension in Iran compared to HEP or final consumption expenditure of households on healthcare is equal to 8% and shows that with 1 percent of increase in HEP, life expectancy will increase almost 0.08 percent. Government final consumption expenditure tension in healthcare is almost twice the tension of final consumption expenditures of the country in healthcare and represents that government expenditures is efficient compared to private section in order to increase life expectancy at birth.

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