Investigating Private and Public Investment on the Growth of the Health Sector in Iran: Multinomial Logistic Regression Approach

The aim of this study is to investigate private and public investment on the growth of the health sector in Iran. For this purpose, the model was investigated with the multinomial logit approach; the 1981-2019 period data of the variable were used. Based on the results of the model with the increase of private investment, the growth of the health sector increases. Also, with the increase of public investment, the growth of the health sector will increase. Among the economic factors economic growth and interest rate lead to an increase. In foreign direct investment, exchange rate and inflation rate, lead to a decrease in the growth of the health sector. Among the social factors, the literacy rate leads to an increase and the AIDS rate leads to a decrease in the growth of the health sector; among the environmental factors, the population (urbanization rate) leads to an increase in the growth of the health sector. Also, according to the defined model and the examination of the final effects, the health expenditure index and the health index (life expectancy) are related to the growth of the health sector, and the increase of these two indices causes the growth of health in Iran. Paying attention to the role of governance in the public sector investments and the profitability of private sector investments, creates favorable and eligible conditions for optimality using foreign direct investments. It also plays a role on education and training, with regard to its positive impact on health growth. Also, emphasizing the role of education and providing new and free medical services to AIDS patients is one of the suggestions of this research in improving the health sector in Iran.