Population health status and economic growth in Chinese provinces: some policy implications

Vasudeva N. R. Murthy and Albert Okunade

Applied Economics Letters, 2014, vol. 21, issue 6, 377-382

Abstract: Using recent cross-sectional, public use, data set on 31 Chinese provinces, we empirically model the core determinants of life expectancy (population health status) using the Ordinary Least Squares (OLS) method, instrumental variables estimation and the relatively more efficient Hubert robust estimator. The empirical regression model results and diagnostic tests indicate that the core determinants of life expectancy are the real GDP per capita, illiteracy rates and daily visits to physicians. Using results of the robust regression estimator (mimic the instrumental variables model estimation), the statistically significant elasticities of life expectancy are 0.033 ( t -ratio = 2.45) with respect to per capita real GDP, 0.41 ( t -ratio = 2.54) with respect to daily visits to the physicians and is - 0.026 ( t -ratio = - 2.26) with respect to the illiteracy rate. That is, income and daily visits to physicians are positively linked to life expectancy while the illiteracy rate stifles life expectancy production. Our findings are consistent with received theories. Policy implications are explored.

Date: 2014
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DOI: 10.1080/13504851.2013.859369

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