Health Investment and Economic Output in Regional China

Gang Chen; Brett Inder; Bruce Hollingsworth

doi:10.1111/coep.12022

Health Investment and Economic Output in Regional China

Gang Chen, Brett Inder, Bruce Hollingsworth

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

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)

Original language	English
Pages (from-to)	261-274
Number of pages	14
Journal	CONTEMPORARY ECONOMIC POLICY
Volume	32
Issue number	2
DOIs	https://doi.org/10.1111/coep.12022
Publication status	Published - Apr 2014

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10.1111/coep.12022

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AB - 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)

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Health Investment and Economic Output in Regional China

Abstract

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