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Measurement of health human capital and its economic effect in China

Author

Listed:
  • Yahong Liu

    (Xuzhou University of Technology)

  • Shixin Huo

    (PricewaterhouseCoopers Zhong Tian LLP Beijing Branch)

Abstract

Improving individual health not only enhances labor productivity but also boosts the productivity of society as a whole. China’s economic development is in urgent need of transitioning from being driven by factors to being driven by innovation, which places higher demands on Health Human Capital (HHC). An evaluation system consisting of 18 indicators across four dimensions—basic health, preventive healthcare, medical resources, quality, and healthy environment—was used to calculate the HHC index of 31 provinces and cities in China from 2005 to 2019 using the entropy method. Following that, this study assessed the influence of HHC on economic growth using endogenous growth theory and the Corgis production function. Firstly, we discovered that the level of home healthcare services in China is on a steady incline, with eastern China showing better results compared to western and northeastern regions. Secondly, enhancing HHC will lead to a rise in the local real per capita GDP and foster economic growth, although there may be regional disparities. Thirdly, provinces with a higher level of economic development exhibit a more significant promoting effect, with southern China showing a greater impact than northern China. China should continue to prioritize both efficiency and equity in the allocation of medical and health resources, while also working to reduce the disparities in HHC development among different regions.

Suggested Citation

  • Yahong Liu & Shixin Huo, 2024. "Measurement of health human capital and its economic effect in China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03060-y
    DOI: 10.1057/s41599-024-03060-y
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    References listed on IDEAS

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