The Impact of Fiscal Decentralization on Health Indicators in Iran

From financial perspective, decentralization is recognized as transfer of resources and expenses from the central government to local systems. Many previous experimental studies suggested that the correct implementation of fiscal decentralization is an important factors of improve health outcomes in developing countries. Accordingly, the major purpose of this study was to evaluate the impact of fiscal decentralization indicators on health indicators in Iran.
This study was evaluated to study long-term relationship between health indicators, fiscal decentralization indicators, per capita income and per capita physician, by using time series data from 1992-2014. For this purpose; the Park co-integration test and Canonical Co-integration Regression (CCR) methods were applied. Also, the statistical analyzes were performed by using the Eviews software.
Based on the results of the model estimation by CCR method, fiscal decentralization of revenue, fiscal decentralization of expenditures, fiscal decentralization of autonomy power, income per capita and per capita physician; all improve health indicators during long-term period. One percent increase in the index of fiscal decentralization indicators, on average, increases the life expectancy in the long-term by 0.14 percent and decreases the infant mortality rate in the long-term by 0.21 percent.
Providing the essential conditions for the expansion of fiscal decentralization, can promote the health in country.