Research On Health Capital Formation Effects And Economic Growth Effects Of Health Expenditure In China

Health is important to the people's well-being.With the improvement of people's living standards,health demands are also increasing.It has been important for scholars to investigate how to efficiently allocate medical and health resources to improve the health levels of residents and thus to promote economic growth and social harmonious development.Therefore,this paper attempts to explore the effect of health expenditure on economic growth and yields relevant policy implications.This paper analyzes the current situation of health expenditure in China.And then on the basis of the healthy production function,this paper makes an empirical study on the health production effect of government health expenditure.The paper analyzes the effect of health expenditure on economic growth in the extended Barro three-sector growth model based on the provincial panel data from 2000 to 2014,and also analyzes the regional and urban differences.The results show that the scale of health expenditure in China is not enough and the investment structure is irrational.The government health expenditure has significant effect on health capital production and can improve the health of residents.The government health expenditure and personal health expenditure can promote economic growth at the national level.The economic growth effect of the government health expenditure in the eastern region is higher than that in the central and western regions,and the economic growth of the personal health expenditure in rural areas is higher than that in the urban areas.According to the analysis of the empirical results,we put forward the following three recommendations,first,increase the size of government health expenditure reasonably and the proportion of government health expenditure in the total cost of health;second,adjust the health expenditure structure and balanced regional health resources;Third,innovate health support model,so that residents can enjoy a balanced and effective health services,improve the healthy living standards and health capital,and promote national economic growth.