The Effects of the Financial Development on Health (Evidence from Iran and Selected MENA Countries)

Siamak  Shokouhifard; Hatef Hazeri  Niri; Hasan  Hoseinzadeh

doi:10.18502/mshsj.v10i1.18935

Siamak Shokouhifard Postdoctoral, Department of Economics, Payame Noor University (PNU), Tehran, Iran
Hatef Hazeri Niri Associate Professor, Faculty of Social Sciences, Mohaghegh Ardabili University, Ardabil, Iran
Hasan Hoseinzadeh Associate Professor, Department of Mathematics, Ardabil Branch, Islamic Azad University, Ardabil, Iran

DOI: https://doi.org/10.18502/mshsj.v10i1.18935

Keywords: Life expectancy, Financial development, Dynamic panel data

Abstract

Background: The health status of people in the community is one of the things that health policy makers are always looking to improve. To achieve high levels of health, identifying the nature of health as well as the factors that influence it is of the utmost importance.

Methods: In this regard, the present study aims to study the impact of factors affecting health using a dynamic panel data method, with an emphasis on financial development. In this research, data and information on Iran and selected MENA countries for the period 2011-2023 were extracted from the World Bank database and the research model was estimated.

Results: Based on the results of model estimation, at a significant level of 5 %, the effect of loans granted to the private sector by the banking system on life expectancy is positive and significant. At a significance level of 5 %, the impact of GDP per capita and the impact of health expenditures on life expectancy have been positive and significant. Also, the effect of energy consumption on life expectancy at birth is negative and statistically significant.

Conclusion: Financial development is one of the most important factors affecting health status, and relevant authorities and institutions should help promote the health of the community by taking measures such as expanding financial inclusion, improving individuals' access to bank credit and facilitating financial transactions. While improving the public access and benefit from financial services, they should also help promote the health of the community.