The influence of government health investment on economic resilience: A perspective from health human capital

Abstract

Government health investment is an important factor in promoting high-quality economic development in China. As government investment in the health sector increases, its impact on economic resilience has garnered widespread attention. However, the mechanisms through which government health investment affects economic resilience remain unclear. This study aims to explore the intrinsic relationship between government health investment and economic resilience, providing a reference for achieving high-quality economic development within the new 'dual circulation' development pattern. Utilizing panel data from China's 31 provinces between 2003 and 2021, this research constructs a government health investment index using the entropy method. It measures the level of economic resilience with an improved entropy-weight TOPSIS approach. Empirical results indicate that an increase in government health investment significantly enhances economic resilience, a conclusion that holds after a series of robustness tests. Furthermore, despite the overall improvement in government health investment levels, significant regional disparities still persist. Mechanism analysis reveals that government health investment primarily exerts a positive impact on economic resilience by enhancing health human capital and promoting the optimization of industrial structure. Heterogeneity analysis suggests that the role of government health investment in enhancing economic resilience is more pronounced in the eastern regions, areas rich in human capital, and regions with lower fiscal pressure.