The Study On The Impact Of Health Investment On Urban And Rural Residents' Income

There are about 55 million poor residents in rural areas by the end of 2015.Therefore,it is still very important how to increase the income of residents.Although tax and subsidy can regulate residents' income and partly make the condition of the low-income group better,the effect is not significant.The most effective way is to improve the ability of low-income groups.The ability of workers is decided by human capital.Health is bound to have an important impact on income,as one of the important components of human capital.If health regarded as durable capital,it is determined by investment in health care without congenital state of health.In addition,there is a phenomenon of "poverty caused by disease" or "return to poverty for illness",among the residents in many Chinese regions.As a result,it is very meaningful to study the relationship between health investment and urban rural residents' income.In this paper,the author will apply spatial econometric method to analyze panel data derived from Chinese 31 province from year of 1997 to year of 2016.The following conclusions are obtained,although the increase of private and government investment in health both have positive influence on residents' income,the income of rural and urban residents is more sensitive to private health investment.For rural residents,family private health investment increases 1%,and the corresponding income will increase about 0.09%.For urban residents,household private health investment expenditure increased 1%,and their income would increase about 0.14%.Urban residents have higher returns to health investment than rural residents,so urban residents have higher enthusiasm for health investment.The government's investment in health care has little impact on the income of urban and rural residents.It also indirectly indicates the insufficient of government's health investment in urban and rural areas.In addition,changes in health investment,education investment and other factors will cause competitive and spillover effects,which will affect the income of residents in the surrounding areas.In rural areas,input in education and other aspects can promote the income of local resident,but it is not conductive to residents in the surrounding areas.In urban areas,input in health,education and other aspects can promote the income of residents in the local and the surrounding.As a result,there are some suggestions on how to effectively improve the income of residents.Firstly,increasing public investment according to the situation of different regions.Secondly,guiding residents to think highly of health investment,pay more attention to the health investment of rural residents.In addition,emphasizing the equity of resource allocation.