Investigating the Effect of Government Health Expenditure on HDI in Iran

Human development is used as one of the most important indices to measure the level of countries development in resent decades. This study examines the effect of government health expenditure on human development index (HDI) by using the ordinary least squares method (OLS) over the period 1990-2009 in Iran. The results show a positive and significant relationship between government health expenditure and human development index. Also, Granger Causality Test indicates that there is no bilateral relationship between the government healthexpenditure and HDI in Iran.