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This article based on the extended Solow model, deduces a theoretical relationship between physical capital investment, health and education investment on human capital and regional output; use inter- provincial panel data to make a regression analysis on the deduced theoretical relationship, then get the effects of health and education investment on regional income level. The results show that the effect of health investment on per capita GRP is significantly negative, while the education investment is significantly negative or indistinctive positive. Therefore, investment in physical capital is a major effect factor of China's regional income differences; the increase of regional health investment is just a consumer demand, caused by the regional income improvement; the impact of education investment on economic growth is not significant. KEYWORD: Health Investment; Human Capital; Income Gap

Health Investment Effect on the Income Gap among China's Provinces An Empirical Study Based on Provincial Panel Data