The Study on Factors of Health Economics and Economic Growth in Iran

Introduction: Economic growth and public welfare are some of the macroeconomic goals for any country. Health economics is one of many parameters used as a criterion for action in the evaluation of this important subject. The present study has been examined the relationship between health economics factors and non-oil economic growth in Iran. Materials and Methods: In this study, an attempt has been made to estimate non-oil economic growth elasticity to health economics factors by applying Dynamic Ordinary Least Squares (DOLS) approach from 1996:1 to 2010:4. Results: The empirical results suggest that among four factors in the field of health economics in this survey, two factors, and i.e. Total health expenditures (as percentage of GDP) and population age 65 and above as a percentage of the total population have been positively and significantly effect on Iranian non-oil economic growth during the period of study. According to the theories and previous empirical studies, other known variables in economic growth models such as financial development (banking sector credit available to the private sector as a percentage of GDP) and foreign trade like export and import have also had a significantly positive effect on Iranian non-oil economic growth. Conclusion: Thus, it seems that the authorities and policymakers in the field of healthcare may prepare the ground for a boosting in the economic growth of Iran through increasing healthcare and health expenditures by orientation of development and giving depth to the healthcare infrastructures and system in the future.