Compare the Effect of Health on Iranian Economic Growth and Vision Basin Countries

Each culture’s intelligence signifies that “health” is wealth, because a nation's health has an important determinant role in national economics’ performance. However, health expenditure portion is mostly higher than gross domestic income in the moredeveloped countriesthan theless ones. For example, this portion for OECD countries is often more than7 percent and for Iran it is5.7 percent. This paper examines the relationship between health condition indexes and real GDP for Sanad-e-CheshmAndaz countries in 1995 to 2010. Therefore, ahealth - economic growth econometric model has been used. Thepanel unit root test, panel cointegration test and Fully Modified Ordinary Least Squares (FMOLS)procedure wereapplied to examine long-run relationship among the variables. There is a long-run relationship between variables. There is a positive and significant relationship between life expectation and real GDP and also between health expenditures and real GDP.There is a negative but significant relationship between infant mortality rate and real GDP. All these results are based on the relevant theories. Results show that spending money on health and rewardingly achieving health and additional desirability can be effective on economic growth increase. Health condition in Iran has also positive effect on economic growth, but in comparison, Iran is among thecountries that gets lower results by spending more. This can be considered as motivation for Policy makers to pay more attention to health condition in Sanad-e-CheshmAndaz countries. However, there are some questions remaining about appropriating resources as well as efficiency.