This analysis demonstrates a positive effect of institutional quality on economic growth in Iran, suggesting health spending is more effective when governance is strong.
Key Points
Enhanced institutional quality significantly contributes to economic growth in Iran during 2000-2022.
Health expenditure alone showed no significant effect on economic growth, but interacted positively with institutional quality.
Using the autoregressive distribution lag (ARDL) method, public healthcare expenditure was analyzed alongside other economic factors.
The findings emphasize the importance of effective resource allocation in health policies to support long-term economic growth.