Abstract

The study aims to identify the determinants of government spending on health sector in the Kingdom of Saudi Arabia during the period (1985-2015)by using cointegration techniques and Error Correction model .The study assumes that government spending on the health sector is determined by a set of factors, including average per capita income, population, number of physicians, urban population, and consumer price index. The results of the study indicate that the population of Saudi Arabia and the numbers of physicians are the most important factors affecting government expenditure on the health sector. An increase in the numbers of physicians by 1% is expected to lead to an increase in spending on the health sector by 2.7%. Finally, the study came out with some recommendations most important of them are; increasing spending on the health sector and encouraging scientific research in the health sector.