Using Linear Regressions Analyzing the Impact of Medical Technology Inputs on Economic Output in China and Brazil

Abstract

In the current era of globalization, the relationship between healthcare investments and economic outcomes has emerged as a pivotal research focus. Researchers have made significant strides in understanding this relationship; however, certain knowledge gaps and disparities in explanations persist. This underscores the importance of investigating the impact of healthcare investments on economic outcomes, particularly in the contexts of two distinct yet influential developing countries, China and Brazil. This study delves into the intricate interplay between healthcare investments and economic outcomes in China and Brazil. Using a comprehensive dataset from the World Health Organization (WHO), including capital health expenditures, domestic government health expenditures, and more. Then we employ the linear regression analysis in tandem with these indicators to investigate the relationship between them and economic output. This research also considers non-data-based variables, such as policies and national economic conditions, to ensure the accuracy of our findings. Our findings reveal that healthcare expenditures, particularly Government General Healthcare Expenditure (GGHE-D) and External Health Expenditure (EXT), significantly impact China's GDP growth. In contrast, Brazil exhibits a distinct pattern, with GGHE-D negatively impacting its economic output while Transfers from Government Domestic Revenue (TransGDR) that allocated to health contribute positively. These distinctions highlight the diverse effects of healthcare spending on the economies of the two nations. In conclusion, this research underscores the need for tailored healthcare policies in the context of economic structures and the significance of evidence-based decision-making. It also highlights the potential of international cooperation in healthcare to drive GDP growth and healthcare innovation.