Investigating Effect of Government Health Expenditures on Iran's Economic Growth

This article investigates the effect of government health expenditures as a proxy for health on Iran's economic growth. In doing this the growth model of generalized Aggregate Production Function (APF), based on the growth accounting approach has been used. The basis of this model is the estimation of production function in growth accounting methodology. In order to estimate the model the Auto Regressive Distributed Lag Method (ARDL) over the period 1350- 1381 has been used. The results of the research indicate that in the long run, government health expenditures have a positive and significant effect on Iran's economic growth. Also convergence relation among government health expenditures, economic growth and other variables of the model, has been ratified. Investigating the reliability of the results there can be found a positive correlation between government health expenditures and economic growth. Investigating the stability test of the estimated models represents the estimated coefficients stability in the long run.