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HEALTH INVESTMENT AND ECONOMIC OUTPUT IN REGIONAL CHINA
Author(s) -
CHEN GANG,
INDER BRETT,
HOLLINGSWORTH BRUCE
Publication year - 2014
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12022
Subject(s) - cointegration , economics , investment (military) , panel data , china , gross regional product , human capital , gross domestic product , health spending , macroeconomics , econometrics , health care , economic growth , economy , geography , archaeology , politics , political science , law , health insurance
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)