Convergence of Per Capita Health Expenditures and Health Outcomes in Countries of the Economic Cooperation Organization
Subject Areas : medical documentsAziz Rezapour 1 , Samira Alipour 2 , Vahid Alipour 3 , Maryam Soleymani Movahed 4
1 - Associate Professor, Department of Health Economics, School of Management and Medical Information, Iran University of Medical Sciences, Tehran, Iran
2 - M.Sc. in Health Economics, School of Management and Medical Information, Iran University of Medical Sciences, Tehran, Iran
3 - Assistant Professor, Department of Health Economics, School of Management and Medical Information, Iran University of Medical Sciences, Tehran, Iran
4 - Assistant Professor, Department of Health Economics, School of Management and Medical Information, Iran University of Medical Sciences, Tehran, Iran
Keywords: Beta Convergence, Sigma Convergence, Health Outcomes, Per Capita Health Expenditures, Stochastic Convergence,
Abstract :
Introduction: Economic growth in rich countries tends to slow down naturally, so the growth process will ultimately lead to convergence. The aim of this study is to investigate the convergence of per capita health expenditures and health outcomes in countries of the Economic Cooperation Organization. Methods: This is a descriptive-analytical Study that was done with the economic data of the countries of the Economic Cooperation Organization in 1995 -2014 and using EViews software version 10. Stochastic convergence using Panel Unit-Root test, and also the standard deviation of log per capita health expenditures and health outcomes have been used to evaluate sigma convergence, and beta convergence with estimating the panel data convergence model. Results: Absolute and conditional stochastic convergence in per capita health expenditures were not approved in ECO countries. The coefficient of the absolute beta convergence of per capita health expenditure in ECO countries was 0.29. The conditional beta convergence coefficient was 0.30 in countries with high human development and that was 0.01 in countries with medium human development. The life expectancy Beta convergence coefficient was 0.28 in ECO-countries and 1.16 for the under-five mortality rate. There is no sigma convergence. Conclusion: Based on the results, the non - convergence of per capita health expenditure and health outcomes divergence show an increase in disparity and revealthat poorer countries have improved their health at a much slower rate than their wealthier member in ECO. Therefore, it is necessary that ECO policies be planned and implemented with the aim of reducing regional differences.
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_||_1.Beheshti M. Iran's economic development: University of Tabriz; 2010 [In Persian].
2- Fattahy N, Soheili K, Reshadat S, Karimi P. The relationship of health human capital and economic growth in the countries of OPEC (OPEC). Journal of Health Management . 2014;3(8):37-51 [In Persian].
3- Hasanbeglo G, Panahi H, Fallahi F. Convergence in health expenditure in provinces of Iran. Faculty of Economics: Tabriz university 2014 [In Persian].
4- Lotfalipour M, Falahi M, Borji M. The effects of health indices on economic growth in Iran. Journal of Health Administration. 2012;14(46):57-70 [In Persian].
5- Behboudi D, Bastan F, Feshari M. The relationship between health expenditure per capita and gdp per capita in low- and middle-income countries (causation approach on panel data). Journal of Economic Modeling. 2011;5(15):81-96 [In Persian].
6- Boyle CF, Levin C, Hatefi A, Madriz S, Santos N. Achieving a “grand convergence” in global health: Modeling the technical inputs, costs, and impacts from 2016 to 2030. PloS one. 2015;10(10):e0140092.
7- Indicators the world bank [Internet]. 2017. Available from: http://data.worldbank.org/indicator.
8- Samadi AH, Homaie Rad E. Determinants of healthcare expenditure in Economic Cooperation Organization (ECO) countries: Evidence from panel cointegration tests. Second Seminar on Health Economics. 2013 [In Persian].
9- Apergis N, Chang T, Christou C, Gupta R. Convergence of health care expenditures across the US states: A reconsideration. Social Indicators Research. 2017;133(1):303-16.
10- Panopoulou E, Pantelidis T. Convergence in per capita health expenditures and health outcomes in the OECD countries. Applied Economics. 2012;44(30):3909-20.
11- Das RC, Ray K, Das U. Health expenditures across major states of India: Issues of convergence and equality. Issues on health and healthcare in India: Springer; 2018. p. 293-306.
12- Apergis N, Padhi P. Health expenses and economic growth: Convergence dynamics across the Indian states. International journal of health care finance and economics. 2013;13(3-4):261-77.
13- Fallahi F, Salmani B, Kiani S. Study beta convergence between S Iran and selected countries. Journal of Economic Research (sustainable development). 2012;12(4):171-94 [In Persian].
14- Clark R. World health inequality: Convergence, divergence, and development. Social science & medicine. 2011;72(4):617-24.
15- Asefzadeh S. Health care economics. 3, editor. Qazvin: Qazvin University of Medical Sciences; 2013 [In Persian].
16- Afzali R, Ansari A. Challenges and opportunities of ECO regional integration: A functionalist appraoch. Majlis & Rahbord. 2017;24(90):337-58 [In Persian].
17- Islamic Parliament Research Center Of The Islamic Republic Of IRAN. The fifth development plan of the Islamic Republic Of Iran 2012 [In Persian]. Available from: http://rc.majlis.ir/fa/law/show/790196.
18- Safdar M, Mangi A. ECO annual economic report 2014. 2016.
19- Motefakerazad M, Ranjpour R, Karimi Z, Gholami L. Evaluation of economic convergence provinces of Iran during 1379-1387 using panel unit root tests. Journal of Macroeconomics. 2015;10(19):141-68 [In Persian].
20- Pourabdolhahan Kovich M, Asgharpur H, Massoum Zadeh S. The convergence of asset market ratios in iran. Journal of Applied Economics Theory. 2016;3(3):115-32 [In Persian].
21- Carrion-i-Silvestre JL, German-Soto V. Panel data stochastic convergence analysis of the mexican regions. Empirical Economics. 2009;37(2):303-27.
22- Panopoulou E, Pantelidis T. Cross‐state disparities in us health care expenditures. Health Economics. 2013;22.
23- Zhang G, Zhang L, Wu S, Xia X, Lu L. The convergence of chinese county government health expenditures: Capitation and contribution. BMC Health Serv Res. 2016;16(1):408.
24- Zeren F, Özcan B, Menteşe EY. Health care convergence analysis in Turkey on the province level: Spatial quantile method. Procedia Economics and Finance. 2016;38(2016):90-7.
25- Montero-Granados R, de Dios Jiménez J, Martín J. Decentralisation and convergence in health among the provinces of Spain (1980–2001). Social Science & Medicine. 2007;64(6):1253-64.
26- Karimi Takanlou Z, Ranj Pour R. Panel data econometrics. Tehran2015. 312 [In Persian] p.
27- Nations U. The human development report. United Nations: United Nations, 2016.
28- Ahmadyan A. Design of early warning system for predicting exposure to failure time of banks. Applied Theories of Economic. 2017;2(4):119-44 [In Persian].
29- Shahbazi k, Rezaei e, Hamidi d. Study of economic convergence in countries of Economic Cooperation Organization. Iranian journal of Trade Studies(IJTC) quarterly. 2015;19(74):155-96 [In Persian].
30- Lau MCK, Fung KWT. Convergence in health care expenditure of 14 EU countries: New evidence from non-linear panel unit root test. 2013.
31- Payne JE, Anderson S, Lee J, Cho MH. Do per capita health care expenditures converge among OECD countries? Evidence from unit root tests with level and trend-shifts. Applied Economics. 2015;47(52):5600-13.
32- Pan J, Wang P, Qin X, Zhang S. Disparity and convergence: Chinese provincial government health expenditures. PloS one. 2013;8(8):e71474.
33- Odhiambo S, AWambugu A, Kiriti-Ng’ang’a T. Convergence of health expenditure in sub-saharan africa: Evidence from a dynamic panel. Journal of Economics and Sustainable Development. 2015;6(6):185-206.
34- Afshari Z, Mohebikhah B. Convergence of health in the provinces of iran in the years 1365- 1378. Tehran: Al-Zahra University; 2001 [In Persian].
35- Oyedele O, Adebayo A. Convergence of health expenditure and health outcomes in ecowas countries. International Journal. 2015;4(2).
36- Hitiris T, Nixon J. Convergence of health care expenditure in the Eu countries. Applied Economics Letters. 2001;8(4):223-8.
37- Kerem K, Puss T, Viies M, Maldre R. Health and convergence of health care expenditure in EU. International Business & Economics Research Journal (IBER). 2011;7(3):29.
38- Wang F. More health expenditure, better economic performance? Empirical evidence from OECD countries. Inquiry : a journal of medical care organization, provision and financing. 2015;52.
39- Omidi A, AslaniAslemarz A. Lessons from EU regional integration for ECO. The Journal of Planning and Budgeting. 2009;14(2):3-38 [In Persian].
