The study on factors of healthcare economy and economic growth in Iran

Economic development and public welfare are some of macroeconomic goals for any country. Health economy is one of the parameters as criterion for action in evaluation of this important subject. The present study has been intended to investigate into the relationship among factors of health economy including total health expenditures (some percent of Gross Domestic Product GDP), life expectancy, Infant mortality rate, and Population age 65 and above as a percentage of the total population on Iranian economic growth minus petroleum. In order to estimate this ratio, the needed study has been carried out by the aid of a econometric model based on Aggregated Growth Theories and according to indices of healthcare economy within time interval 1996:1-2010:4 and by means of Dynamic Ordinary Least Squares (DOLS). The results of the estimations suggest that among four factors of in the field of health economy in this survey, two factors, i.e total health expenditures (as some percent of GDP) and Population age 65 and above as a percentage of the total population have been positively and significantly affected on Iranian economic growth during career of study. Although, other known variables in economic growth models such as financial development and foreign commercial parameters like exportations and importations have also affected on Iranian economic growth minus petroleum positively and significantly in accordance with the existing expectations and theories. Thus, it seems that the authorities and policy- makers in the field of healthcare of this country may prepare the ground for boosting economic growth of this country through increasing healthcare and medical costs by orientation of development and deepening the healthcare infrastructures and system in the future.