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Health Investment And Economic Output In Regional China

Author

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  • GANG CHEN
  • BRETT INDER
  • BRUCE HOLLINGSWORTH

Abstract

type="main" xml:lang="en"> Using a 29-year (1978–2006) panel of provincial-level data from China, this article investigates the role of health capital in a human capital model of economic output. Robust evidence is found through panel cointegration analysis that health capital has a significant and positive effect on the Gross Regional Product in China; the effect being stronger in the inland regions compared to the coastal areas based on estimates that account for regional heterogeneity. This article highlights and discusses the potential role of diminishing returns to health investment in this globally important area. (JEL I15, R11, C23)

Suggested Citation

  • Gang Chen & Brett Inder & Bruce Hollingsworth, 2014. "Health Investment And Economic Output In Regional China," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 261-274, April.
    • Handle: RePEc:bla:coecpo:v:32:y:2014:i:2:p:261-274
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    More about this item

    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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