What drives China’s healthcare expenditure? A theoretical and empirical study of determinants and trends

Bibliographic Data

ID22079665
AuthorsZhilin Ge (Jilin University of Finance and Economics), Jinfeng Cai (Changchun University, corresponding author), Jingbo Hu (0000-0002-1541-3428), HU Jing-bo (0000-0001-9158-3333, Changchun University)
Year2024
Volume12
Pages1445912-1445912
Publication date2024-09-04
Open AccessYes
TypeARTICLE
VenueFrontiers in Public Health (JOURNAL)
Journal identifiersISSN: 2296-2565 • E-ISSN: 2296-2565
PublisherFrontiers Media SA (PUBLISHER • CH)
DOI10.3389/fpubh.2024.1445912
PMID39296849
OpenAlexW4402248967
LanguageEN
Citations received2
References cited17

As economic development advances, there is an increasing focus on improving health conditions, making healthcare expenditure a critical issue worldwide. In China, healthcare spending has shown a marked upward trend, highlighting the importance of understanding its underlying determinants to guide effective policy-making. This study introduces the application of an SV-TVP-FAVAR model to examine the drivers of healthcare expenditure in China from 2007 to 2022. The analysis reveals that economic factors, demographic composition, and policy interventions significantly influence healthcare spending dynamics. Economic growth is strongly linked to increased healthcare expenditure, with economic factors having a particularly pronounced impact during periods of prosperity. Although an aging population drives greater demand for healthcare, the growth rate of healthcare spending has not kept pace with demographic aging, especially following China’s economic slowdown. Policy variables present a dual-edged impact: while increased fiscal outlays contribute to budget deficits, limiting the fiscal space for healthcare investment, government emphasis on scientific and technological progress tends to enhance healthcare spending, indicating a synergistic relationship between these areas. Furthermore, the study identifies a prolonged impact of the COVID-19 pandemic on healthcare expenditure, which continues to interact with other driving factors over an extended period. The empirical findings from this research provide crucial evidence to support the development of informed healthcare policies

China · Economic growth · Economics · Empirical research · Health care · Political science · Statistics · Computer Science · Global Health Care Issues · Healthcare Policy and Management · Healthcare Systems and Reforms · Mathematics · Medicine

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