The Effect of the Institutional Quality of Health Expenses on the Economic Growth of Selected Islamic Countries Using the Pooled Group Average Method

Authors

1 PhD student, Department of Economics, Islamic Azad University, Arak Branch, Arak, Iran

2 Assistant Professor, Department of Economics, Islamic Azad University, Arak Branch, Arak, Iran

3 Assistant Professor, Department of Economics, Islamic Azad University, Malayer Branch, Malayer, Iran

Abstract

Good governance leads to the improvement of the quality of economic institutions and institutions, 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 institutions related to health costs. Therefore, the main goal of this article is to find an answer for how the institutional quality of economic actors affects the economic growth of selected Islamic countries in the field of health expenses. In this regard, the good governance index has been used as a substitute for institutional quality, and the idea of ​​the Cobb-Douglas production function has been used to estimate the research model using the heterogeneous dynamic panel data model by the pooled group average method in the time period of 2008-2022. The results show that health expenses have a relatively low impact on economic growth in the short and long term. Considering the interactive effect of institutional quality and health expenditures, the size of this coefficient is positive in both periods and it indicates that improving the quality of institutions related to health expenditures strengthens the effect of this expenditure on economic growth. Therefore, if increased health spending is accompanied by good institutional quality, it will result in greater economic growth. In other words, although the quantity of healthcare costs is important, the quality of the cost is more important. Focusing on the quality of spending increases economic growth.

Keywords

References

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