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Government Health Expenditure, Economic Growth, and Regional Development Differences-Analysis Based on a
Yuxiao Wang1, Chunhai Tao1, Qizhe Xiong1
1School of Statistics, Jiangxi University of Finance and Economics, Nanchang, China.
Government health expenditure significantly impacts economic growth, with both linear and non-linear effects varying by region. Increasing health spending shows a positive comprehensive effect nationwide.
Area of Science:
- Economics
- Public Health
- Regional Development
Background:
- Government health expenditure is crucial for human capital and economic development.
- Understanding the nuanced relationship between health spending and economic growth is vital.
- Regional disparities in economic development necessitate region-specific analyses of health expenditure impacts.
Purpose of the Study:
- To analyze the impact of government health expenditure on economic development.
- To investigate regional differences in the effects of government health spending.
- To examine linear, non-linear, and comprehensive effects of health expenditure on economic growth.
Main Methods:
- Utilized a non-parametric additive model.
- Analyzed government health expenditure as a proportion of GDP.
- Examined data across national, eastern, central, and western regions.
Main Results:
- Linear effects: Positive impact nationwide and in the west; negative in the east and central regions.
- Non-linear effects: Significant impact across all regions and nationally.
- Comprehensive effects: Significant non-linear positive effect nationwide and in all regions.
Conclusions:
- Government health expenditure has a significant, predominantly non-linear positive effect on economic development.
- Policies should consider regional differences, promoting health spending, fixed asset investment, and exports.
- Continued support for western regions is recommended alongside tailored strategies for eastern and central areas.
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