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Economic growth and the geographic maldistribution of health care resources: Evidence from China, 1949-2010

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  • Qin, Xuezheng
  • Hsieh, Chee-Ruey

Abstract

The geographic maldistribution of health care resources is one of the most persistent characteristics of health care systems around the world. Based on China’s provincial-level panel data in 1949-2010, this paper empirically investigates whether the geographic distribution of health care resources is convergent or divergent in the long run and whether the rapid economic growth contributes to reducing the regional disparity in health care resources in China. Using a dynamic convergence model that controls unobserved provincial heterogeneity and spatial dependence, the empirical results provide much support for β-convergence in that the provinces with lower initial values of health care resources, including the densities of physicians and hospital beds, are seen to grow faster and to catch up with the provinces with higher initial stocks. In addition, we find that GDP per capita has a significant and non-linear impact on the convergence rate of health care resources, providing support for a Kuznets curve in China’s health sector. That is, the inequality in the distribution of health care resources follows an inverted “U” shape as income increases over time. An important implication of our study is that economic growth per se provides a built-in stabilizer to mitigate health inequality through the convergence of health care resources across regions in the long run.

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  • Qin, Xuezheng & Hsieh, Chee-Ruey, 2014. "Economic growth and the geographic maldistribution of health care resources: Evidence from China, 1949-2010," China Economic Review, Elsevier, vol. 31(C), pages 228-246.
  • Handle: RePEc:eee:chieco:v:31:y:2014:i:c:p:228-246
    DOI: 10.1016/j.chieco.2014.09.010
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    2. Huang, Qiong & Chand, Satish, 2015. "Spatial spillovers of regional wages: Evidence from Chinese provinces," China Economic Review, Elsevier, vol. 32(C), pages 97-109.
    3. Chao Song & Yaode Wang & Xiu Yang & Yili Yang & Zhangying Tang & Xiuli Wang & Jay Pan, 2020. "Spatial and Temporal Impacts of Socioeconomic and Environmental Factors on Healthcare Resources: A County-Level Bayesian Local Spatiotemporal Regression Modeling Study of Hospital Beds in Southwest Ch," IJERPH, MDPI, vol. 17(16), pages 1-23, August.
    4. Xuena Liu & Wei Fang & Haiming Li & Xiaodan Han & Han Xiao, 2021. "Is Urbanization Good for the Health of Middle-Aged and Elderly People in China?—Based on CHARLS Data," Sustainability, MDPI, vol. 13(9), pages 1-20, April.
    5. Zhao, Guangchuan & Cao, Xinbang & Ma, Chao, 2020. "Accounting for horizontal inequity in the delivery of health care: A framework for measurement and decomposition," International Review of Economics & Finance, Elsevier, vol. 66(C), pages 13-24.
    6. Costa-Font, Joan & Cowell, Frank A. & Shi, Xuezhu, 2023. "Health Inequality and Health Insurance Coverage: The United States and China Compared," IZA Discussion Papers 16629, Institute of Labor Economics (IZA).
    7. Rikuya Hosokawa & Toshiyuki Ojima & Tomoya Myojin & Jun Aida & Katsunori Kondo & Naoki Kondo, 2020. "Associations between Healthcare Resources and Healthy Life Expectancy: A Descriptive Study across Secondary Medical Areas in Japan," IJERPH, MDPI, vol. 17(17), pages 1-16, August.
    8. Qin, Xuezheng & Wang, Suyin & Hsieh, Chee-Ruey, 2018. "The prevalence of depression and depressive symptoms among adults in China: Estimation based on a National Household Survey," China Economic Review, Elsevier, vol. 51(C), pages 271-282.
    9. Xueqian Song & Yongping Wei & Wei Deng & Shaoyao Zhang & Peng Zhou & Ying Liu & Jiangjun Wan, 2019. "Spatio-Temporal Distribution, Spillover Effects and Influences of China’s Two Levels of Public Healthcare Resources," IJERPH, MDPI, vol. 16(4), pages 1-18, February.

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    More about this item

    Keywords

    Health Care Resources; Economic Growth; Geographic Maldistribution; Dynamic Convergence Model; Kuznets Curve;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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