The Role of Exchange Rate and Credit Channels in the Transmission of Monetary Policies and Their Impact on Health and Healthcare in Oil-Rich Countries

Subject Areas : -Health economy

Abbas Hadi Gatea ¹ , Hosein Sharifi Renani ² , Abbas Ali Jumaah ³ , Bahar Hafezi ⁴

1 - -Department of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
2 - Associate Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
3 - Professor of Economics, Basra University of Oil and Gas, Basra, Iraq
4 - Assistant Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

Received: 2025-02-19 Accepted : 2025-04-06 Published : 2025-10-21

Keywords: Exchange Rate Channel, Credit Channel, Monetary Policy Transmission, Health Sector, Healthcare.,

Abstract :

Introduction: The research on the role of exchange rate and credit channels in the transmission of monetary policies and their impact on the health sector of oil-exporting countries is significant because exchange rate fluctuations and credit conditions can influence the allocation of resources to the health sector. This analysis helps policymakers manage the economic effects on public health effectively.

Research Methodology: This study examines the role of exchange rate and credit channels in the transmission of monetary policies and their impact on the health and healthcare sectors of oil-exporting countries from 2010 to 2023. For this purpose, the dynamic panel method (GMM) was used. The sample consists of 17 selected oil-exporting countries.

Findings: The analysis results show that exchange rate fluctuations, with a coefficient of -0.0512, have a negative impact on health status, meaning that increased exchange rate volatility can negatively affect public health. On the other hand, the credit channel, with a positive coefficient of 0.0512, has a positive effect on the health sector, indicating its role in improving public health status. Additionally, monetary policies, with a negative coefficient of -0.01098, have a negative effect on health, which means that monetary policies negatively impact the resources allocated to the health sector.

Conclusion: The results indicate that exchange rate fluctuations and monetary policies negatively affect health status, while credit channels and oil revenues have positive effects on improving the health sector. Therefore, economic policies should be designed considering these relationships to enhance public health outcomes.

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