Impact of Public Health Equalization on Residents’ Health and Economic Growth: An Empirical Analysis from Jiangsu Province (2006–2015), China

Abstract

Abstract Public health equalization has a significant impact on residents’ health and economic growth. Recently, studies suggested the persistence of series of public health unequal issues in China, such as imbalanced government financial investment, unreasonable configuration of public health resources, etc. The healthcare system in Jiangsu province is a microcosm of the pattern of healthcare delivery in China. Identifying developmental differences in Jiangsu and consequential effect on healthcare output can serve as a good reference for comparing performance of healthcare facilities within China in general. Based on the Model of Health the Healthy Production from Grossman and Lucas’ New Endogenous Economic Growth Model, we selected data from China Statistical Yearbooks and Jiangsu Statistical Yearbooks. 13 cities in Jiangsu province were divided into three groups, categorized as economically developed areas, relatively economically developed areas and less-economically developed areas. The panel cointegration model and e PVECM PVECM error correction model based on E-G two-step method are utilized for empirical research. During the period of 2006–2015, there were differences between the short term effect and long term effect on regional development resulted by the public health equalization level of Jiangsu Province. In the short term, the healthcare investment equalization level has been improved, to a certain extent, which executes a certain promoting effect on the people’s health development and regional economic growth in the long term, which restraint the improvement and development of long term public health equalization level and stimulating on the residents’ health and economic growth. The government of China in general and Jiangsu province in particular could ensure the efficiency of public health human resources, reform the public hospital internal system and establish an effective competition system, aiming to improve the public health equalization and promote balanced development of residents’ health and economic growth.