Dynamic Analysis of the effect of Corruption on Health Indices in Selected Countries using Panel VAR Model

Corruption is one of the economic, political and social tuberous phenomena that can be a threat for accessing health, equity and objectives. The aim of this study was to determine the dynamic impact of corruption on health. This longitudinal study was performed using the Panel VAR model. Moreover, the Johansen test was used to estimate the long-run relationship. Data of 43 countries during 1996-2011 were analyzed through EViews 6. Results showed that, corruption control, in long-term, has a significant positive effect on the health of the society and one unit improvement in corruption leads to 7.47 years increase of life expectancy. Also, corruption control affects the mortality of children under one year with the coefficient of -35.3. Economic inequity and increasing government intervention in the economy have negative impacts on health indicators. Considering the negative impact of corruption on health, fundamental measures for moving towards good governance are required. Moreover, with regard to the impact of economic inequity and the size of government, improving governments efficiency to achieve health goals is necessary.