The Impact of Foreign Trade on Health Inequality in China: Evidence From China Family Panel Studies (CFPS)

Abstract

Objectives: To assess the health inequality caused by foreign trade in China using individual self-rated health data from China Family Panel Studies (CFPS).Methods: The GMM model was used to explore the direct and indirect effects of foreign trade on health level, and the concentration index method was then used to decompose the contribution of foreign trade to health inequality.Results: The direct effect of foreign trade does not contribute to the current health inequality, although the indirect effects of trade contribute to health inequality through inequalities in income and healthcare utilization. The indirect pollution effect of trade does not cause health inequality. Subsequently, the direct effect of trade aggravates the dynamic expansion trend of health inequality, whereas the indirect effects of trade alleviate the increasing trend of health inequality.Conclusion: Although foreign trade improves the overall health level in China, it contributes to health inequality. Optimizing product structure of trade, adjusting income distribution, and enhancing medical securities for low-income groups are necessary to alleviate the health inequality caused by foreign trade.