Threshold Effects of Institutional Quality on the Relationship between Health Expenditure, Education Quality and Economic Growth: A Case Study of Selected Oil Exporting Countries

Subject Areas : -Health economy

niloufar khatami ¹ , hosein sharifi renani ² , bahar hafezi ³

1 - PhD student in economics, Isfahan branch (Khorasgan), Islamic Azad University, Isfahan, Iran
2 - Associate Professor of Economics, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran
3 - Assistant Professor, Department of Economics, Isfahan Branch (Khorasgan), Islamic Azad University, Isfahan, Iran

Received: 2024-04-04 Accepted : 2024-05-14 Published : 2024-10-22

Keywords: Institutional Quality, Health Expenditures, Education Quality, Economic Growth, Oil Exporting Countries.,

Abstract :

Introduction: Considering the importance of the variables of institutional quality, education quality and health expenditure in the economic growth of countries, in the present research, the threshold effects of institutional quality on the relationship between health expenditure, education quality and economic growth of selected oil exporting countries were investigated.

Methods: For this purpose, the data of 15 selected oil exporting countries including Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela during the period of 2001 It was used until 2022. The data analysis method is based on the panel threshold approach (PSTR).

Results: The findings of the research showed that institutional quality, health expenditure and quality of education had positive and significant effects on the economic growth of the studied countries. Also, the results have confirmed the existence of threshold effects of institutional quality on the relationship between health expenditures, education quality and economic growth, so that in the first regime, government expenditures and education quality had less effect on the economic growth variable, while in the second regime Second, this effect is strengthened.

Conclusion: Based on this, it is concluded that a threshold level of institutional quality is necessary for a stronger effect of the quality of education and health expenditures on the economic growth of the countries under review.

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