Authors
1
PhD student, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran
2
Assistant Professor, Department of Economics, Arak Branch, Islamic Azad University, Arak, Iran
3
Department of Economics, Islamic Azad University, Malayer branch
10.30471/iee.2024.9920.2387
Abstract
Good governance leads to the improvement of the quality of economic institutions and institutes, and this quality improvement, including in the field of health, affects the way of growth and development. The existence of institutional and structural problems of institutions, which is caused by weak governance, has a negative effect on the performance and effectiveness of institutions and institutes related to health costs. Therefore, the main goal of this article is to find an answer for how the institutional quality of economic activists in the field of health costs affects the economic growth of selected Islamic countries. In this regard, the good governance index has been used as a substitute for institutional quality, and the idea of the Douglas-Cobb production function has been used, using the heterogeneous dynamic panel data model using the consolidated group average method in the research model period of 2008-2022. It is estimated. The results show that health expenditure has a relatively low coefficient on economic growth in the short and long term. Considering the interactive effect of institutional quality and health expenditure, the size of this coefficient is positive in both periods and indicates that the quality improvement Institutions related to health costs strengthen the impact of this cost on economic growth. Therefore, if the increase in health spending is accompanied by good institutional quality, it will result in more economic growth. In other words, although the amount of health expenses is important, the quality of the expenses is more important. Focusing on the quality of spending increases economic growth.
Keywords
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