The impact of health expenditure and environmental quality on economic growth: A Case Study OECD and the Middle East

Today, the major challenges of growth and sustainable development for communities, related to the environment and health . In recent decades , increasing environmental contaminat , such as air pollution , communities have faced with a wide range ofdiseases and increased health care expenditure and reduced the labor productivity. While increasing health expenditure, boost economic growth a nd development, but pollutions reduces the positive impact of these expenditures on economic growth. In fact , a large part of the country's finances and budget spent on Pollution effects and diseases resulting therefrom, instead of spending for economic development . In this study, the relationship between health expenditure, environmental pollution and economic growth in the 50 countries in the period 1996 to 2012 has been investigated. Results have been estimated using panel data and generalized method o f moments(GMM). The results show that health expenditure is significant and positive impact on economic growth. However, with economic growth but may also increase health expenditure. For a detailed examination of the issue of different approaches have bee n used. First, cross - contamination due to environmental and health expenditure were included in the model and its impact on economic growth is negative; Second, in a separate model environmental impact of pollution on health expenditure is investigated an d the result is a significant positive effect. Third, the impact of environmental pollution on life expectancy estimated and the negative effects of that say the environmental pollution along with economic growth, Public health damage and the loss of part of the expenditure, and in other words, economic growth slows.