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Local Fiscal Pressure and Public Health: Evidence from China

Author

Listed:
  • Xu Zhang

    (School of Economics and Management, Zhejiang Agriculture and Forestry University, Hangzhou 311300, China)

  • Tianchu Feng

    (Jiyang College, Zhejiang Agriculture and Forestry University, Zhuji 311800, China)

  • Chengjun Wang

    (School of Economics and Management, Zhejiang Agriculture and Forestry University, Hangzhou 311300, China)

  • Chaozhu Li

    (China Institute for Rural Studies, Tsinghua University, Beijing 100084, China)

Abstract

Under the dual challenges of global downward economic pressure and the COVID-19 pandemic, studying the impact of local government fiscal pressure on public health is a meaningful endeavor. First, this paper analyzes the impact of local government fiscal pressure on public health and clarifies its impact mechanisms. Second, by utilizing panel data of 31 Chinese provinces from 2000 to 2020, two-way fixed-effects and mediating-effects models are developed to identify the effects and impact mechanisms of local government fiscal pressure on public health. The results show that local government fiscal pressure can be detrimental to public health through three main mechanisms: reducing public health fiscal expenditures, hindering industrial structure upgrading, and exacerbating environmental pollution. Heterogeneity analysis finds that the negative effects of local government fiscal pressure on public health mainly exist in Central and Western China. Accordingly, three policy implications are proposed: optimizing the fiscal system, accelerating industrial upgrading, and improving the appraisal system of local officers.

Suggested Citation

  • Xu Zhang & Tianchu Feng & Chengjun Wang & Chaozhu Li, 2023. "Local Fiscal Pressure and Public Health: Evidence from China," IJERPH, MDPI, vol. 20(6), pages 1-17, March.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:6:p:5126-:d:1097162
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