Health Expenditures in Developing Countries: Determinants and Guidelines

Background: In this paper, the health expenditures function of developing countries is estimated with a panel data model.  Methods: All credible determinants of health expenditures in these countries are probed and their coefficients are found out. Variables that affect health expenditures in develo...

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Main Authors: Hamidreza Hajibabaei, Hosein Sadeghi Soghdel, Sajjad Faraji Dizaji, Alimohammad Ahmadi
Format: Article
Language:English
Published: Gonabad University of Medical Sciences 2020-06-01
Series:Journal of Research & Health
Subjects:
Online Access:http://jrh.gmu.ac.ir/article-1-1415-en.html
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author Hamidreza Hajibabaei
Hosein Sadeghi Soghdel
Sajjad Faraji Dizaji
Alimohammad Ahmadi
author_facet Hamidreza Hajibabaei
Hosein Sadeghi Soghdel
Sajjad Faraji Dizaji
Alimohammad Ahmadi
author_sort Hamidreza Hajibabaei
collection DOAJ
description Background: In this paper, the health expenditures function of developing countries is estimated with a panel data model.  Methods: All credible determinants of health expenditures in these countries are probed and their coefficients are found out. Variables that affect health expenditures in developing countries are income, demographic features, social characteristics, and technological progress. Old proportion is used as a proxy of demographic features, education as a proxy of social characteristics, and improved sanitation as a proxy of technological progress.  Results: The results show that the effects of these variables on health expenditures are 0.050094, 10537.04, -2681.737, and 3406.551, respectively. Since it was revealed that health expenditures determinants in these countries are not under the direct control of the government, an increase in health expenditures is inevitable in the near future. This condition would jeopardize the feasibility of not only financing this newly extended part of the economy but also all social security schemes. Greater investments in health care without corresponding economic and tax revenue growth may result in fewer resources for state-funded social services, which may influence health outcomes.  Conclusion: Since it was revealed that health expenditures determinants in these countries are not under the direct control of the government, an increase in health expenditures is inevitable in the near future. This condition would jeopardize the feasibility of not only financing this newly extended part of the economy but also all social security schemes. Greater investments in health care without corresponding economic and tax revenue growth may result in fewer resources for state-funded social services, which may influence health outcomes. Therefore, we highly recommend that governments pursue cost containment measures, concentrate more on investment in human capital to enhance health care education with consequential benefits, improve health throw sectors other than the health sector and enforce health in all policy. Thus, all policymakers in executive and legislative branches of government should participate in health improvement and health expenditures containment. For that matter, health policies need to expand to address all factors, including those outside the medical system. In this article, these factors are discovered and their effects on health expenditures are estimated.
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spelling doaj.art-f3d89748458f49c597b634e5cece441b2022-12-22T00:00:49ZengGonabad University of Medical SciencesJournal of Research & Health2423-57172423-57172020-06-01104257266Health Expenditures in Developing Countries: Determinants and GuidelinesHamidreza Hajibabaei0Hosein Sadeghi Soghdel1Sajjad Faraji Dizaji2Alimohammad Ahmadi3 Department of Economic Development Faculty of Management and Economics, Tarbiat Modares University,Tehran, Iran. Department of Economic Development Faculty of Management and Economics, Tarbiat Modares University,Tehran, Iran. Department of Economic Development Faculty of Management and Economics, Tarbiat Modares University,Tehran, Iran. Department of Economic Development Faculty of Management and Economics, Tarbiat Modares University,Tehran, Iran. Background: In this paper, the health expenditures function of developing countries is estimated with a panel data model.  Methods: All credible determinants of health expenditures in these countries are probed and their coefficients are found out. Variables that affect health expenditures in developing countries are income, demographic features, social characteristics, and technological progress. Old proportion is used as a proxy of demographic features, education as a proxy of social characteristics, and improved sanitation as a proxy of technological progress.  Results: The results show that the effects of these variables on health expenditures are 0.050094, 10537.04, -2681.737, and 3406.551, respectively. Since it was revealed that health expenditures determinants in these countries are not under the direct control of the government, an increase in health expenditures is inevitable in the near future. This condition would jeopardize the feasibility of not only financing this newly extended part of the economy but also all social security schemes. Greater investments in health care without corresponding economic and tax revenue growth may result in fewer resources for state-funded social services, which may influence health outcomes.  Conclusion: Since it was revealed that health expenditures determinants in these countries are not under the direct control of the government, an increase in health expenditures is inevitable in the near future. This condition would jeopardize the feasibility of not only financing this newly extended part of the economy but also all social security schemes. Greater investments in health care without corresponding economic and tax revenue growth may result in fewer resources for state-funded social services, which may influence health outcomes. Therefore, we highly recommend that governments pursue cost containment measures, concentrate more on investment in human capital to enhance health care education with consequential benefits, improve health throw sectors other than the health sector and enforce health in all policy. Thus, all policymakers in executive and legislative branches of government should participate in health improvement and health expenditures containment. For that matter, health policies need to expand to address all factors, including those outside the medical system. In this article, these factors are discovered and their effects on health expenditures are estimated.http://jrh.gmu.ac.ir/article-1-1415-en.htmlhealth expendituresdeveloping countrieshealth expenditures determinants
spellingShingle Hamidreza Hajibabaei
Hosein Sadeghi Soghdel
Sajjad Faraji Dizaji
Alimohammad Ahmadi
Health Expenditures in Developing Countries: Determinants and Guidelines
Journal of Research & Health
health expenditures
developing countries
health expenditures determinants
title Health Expenditures in Developing Countries: Determinants and Guidelines
title_full Health Expenditures in Developing Countries: Determinants and Guidelines
title_fullStr Health Expenditures in Developing Countries: Determinants and Guidelines
title_full_unstemmed Health Expenditures in Developing Countries: Determinants and Guidelines
title_short Health Expenditures in Developing Countries: Determinants and Guidelines
title_sort health expenditures in developing countries determinants and guidelines
topic health expenditures
developing countries
health expenditures determinants
url http://jrh.gmu.ac.ir/article-1-1415-en.html
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AT alimohammadahmadi healthexpendituresindevelopingcountriesdeterminantsandguidelines