Threshold Effect of Aging Labor Force and Public Health Expenditures on Labor Force Productivity in MENA Countries (in Persian)

Seyed Kamal Sadrghi () and Ali Talib Hussein Al-Saadi ()
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Seyed Kamal Sadrghi: Faculty of Economics, Department of Economics and Management, University of Tabriz, Tabriz, Iran
Ali Talib Hussein Al-Saadi: Faculty of Economics, Department of Economics and Management, University of Tabriz, Tabriz, Iran

The Journal of Planning and Budgeting (٠صلنامه برنامه ریزی و بودجه), 2024, vol. 29, issue 3, 121-142

Abstract: Nowadays, improving productivity, as the most important factor affecting economic growth, has become one of the basic concerns of policymakers. Considering the importance of productivity on the one hand, and the important role of the age composition of labor force and health expenditures on it, on the other hand, this study aims to investigate the relationship between government health expenditures and labor productivity, taking into account the threshold effects of aging labor force participation rate in MENA countries during 2000-2023 applying threshold dynamic and static regression method of panel data. The results show that labor productivity of the previous year has a positive and significant effect on current productivity. Moreover, when old labor force participation rate is lower than 14.40, health spending does not have a significant effect on the productivity, but in the conditions where old labor force participation rate is more than 14.40, health spending has a positive and significant relationship with productivity. Also, based on the results, the variables of FDI and ICT have positive and significant effects, and education and trade openness have negative and significant relationships with labor productivity.

Keywords: Labor Productivity; Threshold Regression Method; Old Labor Participation Rate. (search for similar items in EconPapers)
JEL-codes: C23 E23 I18 (search for similar items in EconPapers)
Date: 2024
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