The Relationship between Education and Health: Vector Error Correction Model (VECM)

Despite the importance and impact of health and education on economic growth in countries, the causal relationship between education and health is important to policymaking. This study aimed to investigate the causality relationship between education and health in the short and long runs using the Vector Error Correction Model (VECM) in Iran.

This was an analytical and applied study, conducted at the national level using Vector Error Correction Model for Iran. The data type was annual time series which extracted from the World Bank website between the years of 2017-1996. The VECM and the required tests were estimated in Eviews 10 software.

the result showed that there was a cointegration vector for the health function of Iran in these years, i.e., current health was not only a function of independent variables of the model but also a function of health and education variables in previous periods. Also, in the short and long run, the years of schooling had the causal effect on life expectancy and, life expectancy had a causal effect on years of schooling in Iran. GDP and health expenditures per capita had a positive effect and the carbon dioxide production per capita had a negative impact on life expectancy.

According to the results, there was a two-way causality relationship between education and health in the short and long runs in Iran, so that in the short and long runs, increased education can lead to improved health status, and improved health status can lead to increased education. Therefore, the policies of the education and health sectors are complementary.