The Impact of Public Spending on the Health Sector in Enhancing Economic Welfare Indicators – Iraq Case Study
A Thesis Submitted to the Council of the College of Administration and Economics – University of Karbala
As Part of the Requirements for Obtaining a Master’s Degree in Economic Sciences By student
Nabaa Ahmed Mahdi Al-Hasnawi
Under the Supervision of
Professor Dr
Munadel Abbas Hussein Al-Jawari
Abstract
The research addressed the impact of health spending on enhancing economic welfare indicators in Iraq for the period (2022_2004), that the health sector is considered one of the main pillars of human and economic development in societies. This sector suffers from major challenges due to years of wars and economic instability, which led to the deterioration of health infrastructure and lack of resources. However, the importance of the health sector remains essential, as it contributes to improving the standard of living for citizens by providing medical services and preventive care, and reducing the spread of diseases and epidemics. Improving the health sector means enhancing the well-being of the population and increasing their productivity, which leads to strengthening the national economy and attracting foreign investments looking for a stable health environment for their employees and residents.
Health spending is the financial amounts allocated by the government, the private sector or individuals to finance health care and medical services. Health spending includes hospital operating costs, purchasing medical equipment, providing health services, medicines, as well as disease prevention programs. The research addresses the problem through several questions, namely: To what extent has Iraq been able to achieve economic welfare from its spending on public health? To what extent has Iraq been able to adopt qualitative trends and effective economic policy to link health spending to achieving a greater amount of economic welfare and reducing the level of deterioration of the health sector and the irregularity of government funding for it? Based on the hypothesis that there is a relative impact of health spending on economic welfare in Iraq and that the increase in health spending did not contribute significantly to addressing the deterioration of the health level in Iraqi society. The aim of the research was to achieve several points, including an economic vision on how to activate the relationship between health spending and economic welfare in Iraq. Measuring and analyzing the impact of health spending on economic welfare in Iraq during the research period (2004-2022). The development of some health indicators and some economic welfare indicators were researched and analyzed by reviewing the theoretical and conceptual framework of the research variables and using the tabular data analysis method using annual and compound growth rates and index numbers, as well as using modern standard tests, where the stability test (unit root) and the limits test for joint integration and short-term response and the Cusum test were used. The research showed that there is a direct and positive relationship between health spending and economic welfare, as well as between public spending and economic welfare in the short and long term, in accordance with the economic theory, as economic welfare was represented by the average per capita share of the product, as well as the existence of a direct and positive relationship between economic welfare (represented by the gross domestic product) and health spending. In light of the results, the researcher presented a set of recommendations, including the necessity of adopting effectiveness in improving the health status of the general public, preparing and training medical personnel, and introducing advanced medical devices to compensate patients for going abroad, opening the way for the private sector to invest in medicine and benefit from international experiences in this direction.
