Exploring the Interrelationships between Public Health, Fiscal Decentralization, and Local Government Debt in China.

Area of Science:

• Public Health
• Economics
• Public Administration

Background:

• Understanding the interplay between subnational finance and population well-being is crucial for effective governance.
• Local government debt and fiscal decentralization are key factors influencing public service delivery and health outcomes.
• China's unique fiscal and administrative structure provides a valuable case study for these dynamics.

Purpose of the Study:

• To theoretically and empirically investigate the complex relationships between local government debt, fiscal decentralization, and public health.
• To analyze the directionality and magnitude of these interrelationships within the Chinese context.
• To provide evidence-based insights for policymakers aiming to improve public health through fiscal and administrative reforms.

Main Methods:

• Development of a theoretical model to conceptualize the linkages between fiscal decentralization, local government debt, and public health.
• Empirical analysis using panel data from Chinese local governments spanning 2015-2021.
• Application of rigorous regression methodologies to validate the observed relationships.

Main Results:

• A significant bidirectional relationship was identified between fiscal decentralization, local government debt, and public health.
• Higher levels of local government debt were found to adversely affect both fiscal decentralization and public health indicators.
• Fiscal decentralization demonstrated a positive and significant impact on public health outcomes.

Conclusions:

• Local government debt management is critical for maintaining fiscal health and supporting public health initiatives.
• Fiscal decentralization, when appropriately structured, can be a powerful tool for enhancing public health.
• Policy interventions should consider the interconnectedness of fiscal policies, administrative structures, and public health outcomes.