Health and growth in China: Greater investment in both soft- and hard-ware are needed

Abstract

The purpose is to study the relationship between health investment and economic growth in China. The research design involves empirical research using semi parametric regression models and instrumental variable methods. The results indicate that on the one hand, Chinese health investment can promote economic growth, and its promoting effect on economic growth is non-linear; On the other hand, healthcare investment in the form of human capital is more conducive to promoting regional economic growth than healthcare investment in the form of material capital. The conclusion is that it is necessary to increase health investment in the form of human capital such as the number of health personnel in the eastern region, as well as in the form of material capital such as the number of beds in the central and western regions, in order to better promote regional economic growth.