Health Expenditures, Good Governance and Economic Growth in Selected Asian Countries, using the Pooled Mean Group method
This study was conducted with the aim of investigating the effect of good governance in moderating the effect of health expenditures on the economic growth of selected Asian countries that have similar governance quality.
In order to achieve the goal of the research, the necessary estimates have been made using the Pooled Mean Group method.in the period of 2015-2022. Health costs and good governance index have been analyzed as the main explanatory variables along with other variables affecting economic growth, using the idea of the Cobb-Douglas production function.
The results show that allocating more health expenditure alone is not enough to increase economic growth, and the logarithm of health expenditure in the short and long term has a relatively low coefficient on economic growth But considering the effect of good governance, the size of this coefficient is strengthened in both periods, which seems to be the low efficiency of health expenditures due to the low quality of governance related to health expenditures in the countries under review. This study shows the effective role of how governance affects effectiveness.
If the increase in health expenses is accompanied by good quality of governance, it will result in more economic growth. In other words, the quantity of healthcare costs is important, but the quality of the costs is more important. Focusing on the quality of spending increases economic growth.
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