The impact of health expenditure on the economic growth in IRAN (1980-2004)

Health expenditures are important factors in the economic growth; it can be raise economic development by labor forces and physical capital. in Iran health expenditures are important because more young population. It can be help to develop in economics by keeping of young labors healthy, and increasing general education. It was considered growth theory based on health expenditure aside other factors such as labor force and physical capital for economic. We used from solo model for study; and results of first estimating have evaluated by Husman test. The findings show positive and statistically significant effect for health expenditure, positive and statistically significant effect of population growth on the economic growth in Iran during study period, aside positive effect of other factors such as: labor force and capital. Considering the direct effect of health expenditure on the economic growth, and indirect effect on economic through decreasing death of active population and also decreasing weakness and absence because of lessening disease, and distinguishing of effect amount on the economics in Iran; this study helps to programmers and decision-makers to change their views in the ways of funds allocation in the part of health and therapy, they consider healthy as a capital goods and investment more in this field. So that it develop the economic growth and development of country in future.