The Effects of the Resource Curse Indices and Good Governance on Health Expenditures in Different Income Deciles

Abstract

The views on health have gained a broader perspective today, so that according to these views, in addition to economic factors, non-economic factors (political, cultural and social ones) also affect health expenditures. Therefore, in this study the effect of 9 economic and non-economic indicators (indicators of good governance and resources curse) on the level of health expenditures in different income classes was studied using the XLSTAT software. The results of this study revealed that, indicators of inflation and employment (economic factors) most accounted for variations of health expenditures in different income classes. Also, it was revealed that economic and non- economic factors in higher and lower income deciles increased healthcare spending and in the middle deciles it had a negative impact on this expenditure; however, according to the authors, the positive nature of effect of factors on upon low and high deciles is different. From the view of researchers, in the lower deciles increased spending was generally due health problems (essential goods), but in higher income deciles increase in expenses was generally due to increased spending on health and beauty (luxury). According to the results, it was observed that variables of employment, economic growth and political stability in different income classes had a negative impact on health expenditures and other indicators had positive impact on health spending in income deciles. In other words, based on the results, real variables (growth and employment) had more effect than monetary variables (inflation) and non-economic variables (indicators of good governance and resource curse) on reducing health care costs among different income classes.

DOI: 10.5901/mjss.2016.v7n4S2p203