HEALTH INVESTMENT AND ECONOMIC OUTPUT IN REGIONAL CHINA

Gang Chen (), Brett Inder and Bruce Hollingsworth

Contemporary Economic Policy, 2014, vol. 32, issue 2, 261-274

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)

Date: 2014
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