Public Health Expenditure, Health Capital And Economic Growth

Since human enter 20 th century, the world’s total population increased rapidly. In 2011 the world’s population exceeded 7 billion.Total economy grew more than two times by the early twentieth century, to reach $ 71.7 trillion By the sixth national census data shows, China’s total population was 1.339 billion, 0 year old to 14 years old population was about 220 million,aged over 60 old was 177 million, it was 13.26% of the total population.accounting for 16.60%,of the population aged 60 and above 177 million, 13.26% of the total population, It is predicted that by 2020, China’s elderly population aged over 65 will reach 167 million, about 24% of the world’s aging population.will from China. By 2030, the population over 65 years of China accounted will surpass Japan.China will become the highest population aging countries of the world. With China’s aging trend accelerated and sustained low natural population growth rate,unlimited supply of labor "Demographic dividend window period" will end, "demographic dividend " advantage gradually decay implies dependence large number of rural surplus labor transfer to stimulate economic growth competitive advantage will be lost. Under the enormous pressure of rising labor costs in the industry and extensive restructuring,In the future of the aging population increasingly grim situation, to successful across the " middle income trap", by increasing the health capital investment to maintain sustained,healthy economic growth in the western region, has important theoretical and practical significance.After the founding of New China,the central and local governments has played an active leading role in China’s western region in the field of public health,Public health in western China has changed dramatically under the planned economy system, and the broad masses of medical conditions have been greatly improved.With the rapid development of China’s economy, the GNP has been ranked second in the world, people’s living standards and health capital of the western region had gradually improve, analysis the impact on economic growth and the role of public health expenditure on health capital.Because of the economic and social development is lagging of 12 western provinces, autonomous regions and municipalities most of the western region’s economic development are difficult, levels of public health care is low, there is not enough investment in public health,Public health has hindered behind healthy capital increase and economic development. thus caught in a vicious cycle. Since the reform and opening up, the western regional public health management system, operation mechanism and social development are incompatible issues become increasingly prominent.Western Development promote economic development,at the same time, public health problembecame increasingly complex,with industrialization,urbanization,aging,massive,population movements,due to over-exploitation of resources, ecological deterioration occured in the some place of western region. poor population increased in some areas, new and re-emerging infectious diseases are frequent. Chronic diseases, mental and psychological illness,accidents are rising, poor lifestyle,and bad habits are everywhere. Increase the government’s public health spending, solve the legitimate needs of public health in the western region, mitigate the negative impact of the aging population, Promote economic growth of healthy and sustainable, it is an urgent problem to solve in western region. Also is one of the difficult research and regional economic growth research of china.In this paper, Comb.the health capital, the Public health expenditure, and health capital theory, and economic growth theory,based on the reviewing of the public health expenditure, health capital and economic growth theory,analysis the impact on economic growth and the role of public health expenditure,put the 12 provinces(municipalities and autonomous regions) of western China as the main object to study, use literature research, theoretical and empirical,Combining theoretical and empirical, qualitative analysis and quantitative analysis, they were constructed of public health capital model and endogenous growth model. based on the panel data of 2005-2012 of 12 provinces, municipalities and autonomous regions of western China, using quantitative analysis method and empirical analysis, research the affect of government’s public health spending,health capital,and economic growth.The research had concluded main conclusions from this paper :(1) It was a great role in promoting health capita of the western region through government health expenditure, Improve the health of the capital is still more dependent on the government’s public health spending.It also have great potential and space through increased public health spending to improve the health capital.of western china.(2) There was a certain stimulus that government public health spending on the economic growth. Since public health spending generally belongs consumer spending, but public health spending have characteristics of health capital investment, So public health spending have positive and negative effects on economic growth,positive effect is greater than the negative effect.Finally, basis on the empirical analysis, the policies and recommendations were proposed to improve the health capital levels, promote economic growth in the western region:(1) Continue to increase construction & investment of public health of remote western regions;(2) Strengthen the supervision of the government’s public health investment funds;(3) Continue to increase construction & investment of human resource development in the western region;(4) Develop systematic, diversified health education and health promotion, prevent disease, promote health and improve quality of life;(5) Promote the integration of urban and rural cooperative medical care system, and gradually achieve regional unity of medical care system.