The Interaction between Health Capital Stock and Economic Growth

Abstract

The health of citizens affects their labor ability. The labor ability of the whole society determines the labor output, and the physical output will bring economic growth, that is, the health of citizens will indirectly affect the economic growth of the whole society. This paper uses the data of public health investment, per capita GDP and fixed capital stock of ten developing and developed countries from 1980 to 2016 to explore the different degrees of interaction between health capital stock and economic growth between developing and developed countries, as well as the possible causal relationship between health capital and economic growth. After unit root test and cointegration test to test the stationarity of the data and ensure that there is no pseudo regression, OLS regression is carried out on the data. The regression results confirm or partially confirm three hypotheses: the promotion degree of health capital to the economic growth of developed and developing countries is significantly different, and the promotion degree of health capital to developing countries is higher; In the long run, the promoting effect of health capital on economic growth is weakened; There is a causal relationship between health capital and economic growth.