Can information infrastructure development improve the health care environment? Evidence from China.

Abstract

Existing studies ignore the importance of information infrastructure development in improving regional health care environment. This paper adopts a spatial difference-in-difference (DID) model to assess the impact of information infrastructure development on urban health care environment based on a quasi-natural experiment of the “Broadband China” city pilots (BCCP). A balanced panel of 259 cities from 2010 to 2019 is selected for empirical analysis in this paper. Our findings show that the implementation of BCCP resulted in a 4.1 and 2.9% improvement in local medical workforce and medical infrastructure. In addition, there is significant spatial spillover effects of the implementation of BCCP, with 7.2 and 12.5% improvement in medical workforce and medical infrastructure in the surrounding areas. Our findings also suggest that information infrastructure development enhances the health care environment by driving industrial upgrading and education levels. Further analysis shows that BCCP has the strongest improvement on medical workforce in the eastern region and non-ordinary prefecture-level cities. For medical infrastructure, BCCP has stronger improvement in central region, western region, and non-ordinary prefecture-level cities. Finally, the paper conducts a series of robustness tests to ensure the reliability of the analysis results, including parallel trend tests, placebo tests, and re-estimation with different methods. Policies to improve the health care environment through information infrastructure development are proposed.