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Health and growth in China: Greater investment in both soft- and hard-ware are needed

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  • Shuyong, Fu
  • Shuyu, Chen
  • Jinlong, Zhai

Abstract

The purpose is to study the relationship between health investment and economic growth in China. The research design involves empirical research using semi parametric regression models and instrumental variable methods. The results indicate that on the one hand, Chinese health investment can promote economic growth, and its promoting effect on economic growth is non-linear; On the other hand, healthcare investment in the form of human capital is more conducive to promoting regional economic growth than healthcare investment in the form of material capital. The conclusion is that it is necessary to increase health investment in the form of human capital such as the number of health personnel in the eastern region, as well as in the form of material capital such as the number of beds in the central and western regions, in order to better promote regional economic growth.

Suggested Citation

  • Shuyong, Fu & Shuyu, Chen & Jinlong, Zhai, 2024. "Health and growth in China: Greater investment in both soft- and hard-ware are needed," Journal of Policy Modeling, Elsevier, vol. 46(6), pages 1263-1273.
    • Handle: RePEc:eee:jpolmo:v:46:y:2024:i:6:p:1263-1273
    DOI: 10.1016/j.jpolmod.2024.02.006
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    References listed on IDEAS

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    1. Wang, Kuan-Min, 2011. "Health care expenditure and economic growth: Quantile panel-type analysis," Economic Modelling, Elsevier, vol. 28(4), pages 1536-1549, July.
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    3. Ephraim Kleiman, 1974. "The Determinants of National Outlay on Health," International Economic Association Series, in: Mark Perlman (ed.), The Economics of Health and Medical Care, chapter 5, pages 66-88, Palgrave Macmillan.
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