The Impact of Public and Private Health Expenditures on Poverty in developing countries

Harati Javad¹, Harati Khalilabad Touraj²*, Rezapour Aziz³, javan-noughabi javad²

2. PhD Student, Department of Health Economics, School of Health Management and Information Science, Iran University of Medical Sciences, Tehran, Iran.
3. Assistant Professor, Department of Health Economics, School of Health Management and Information Science, Iran University of Medical Sciences, Tehran, Iran.
*Correspondence: Health Management and Economics Research Center, School of Health Management and Information Sciences, Valiasr St., Rashid Yasemi St., Tehran.
Tel: 02188671615                                                       Email: Toorajharati@Gmail.com

Abstract:

Background & Objectives: Changes in twenty-first century and incidence of development gap among countries has caused particular attention of all economic schools to the problem of poverty and the factors affecting it, as a consequence of underdevelopment. Health and health expenditures are considered as a tool for governments to get out from poverty.

Methods: This study is one type of econometric studies with using panel data for Iran and 30 developing countries during 2005 to 2012. To determine the effect of health expenditures on poverty headcount ratio, Hassman and Chow tests were used in order to select the type of random or fixed effect regression model. Data analysis was done through Eviews 6 software.

Results: Among factors affecting poverty, health expenditure had more significant impact on poverty. So that, one unit increase in public and private health expenditures caused respectively -2.93 decrease and 1.19 unit increase in headcount poverty ratio. In comparison to health expenditure, access to health facilities and primary school enrollment rate with respectively coefficients of -0.81 and 0.34 had less impact on poverty headcount ratio.

Conclusion: Governments should pay more attention to policies of financing health sector and more expansion of governmental functions in financial support of health sector rather than private sector.

Key­words: Public Health Expenditure, Private Health Expenditure, Poverty Headcount Ratio

Citation: Harati J, Harati Khalilabad T, Rezapour A. The Impact of Public and Private Health Expenditures on Poverty in developing countries: 2005– 2012. Journal of Health Based Research 2017; 2(4): 345-354.