On the supply of China's healthcare resources in a decentralized healthcare system |
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| Institution: | 1. Department of Business, Universitat Rovira i Virgili, Av. Universitat 1, 43204 Reus, Spain;2. Instituto de Investigaciones Económicas y Sociales del Sur, Universidad Nacional del Sur (UNS), 12 de Octubre y San Juan, B8000CTX Bahía Blanca, Argentina;3. Universidad Provincial de Sudoeste, Alvarado 332, B8000CJH Bahía Blanca, Argentina;4. Instituto de Física, Universidade Federal de Alagoas (UFAL), BR 104 Norte km 97, 57072-970 Maceió, Alagoas, Brazil;5. Instituto Tecnológico de Buenos Aires (ITBA), Av. Eduardo Madero 399, C1106ACD Ciudad Autónoma de Buenos Aires, Argentina;6. Complex Systems Group, Facultad de Ingeniería y Ciencias Aplicadas, Universidad de los Andes, Av. Mons. Álvaro del Portillo 12.455, Las Condes, Santiago, Chile |
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| Abstract: | The structure of China's current governance bears prominent features of fiscal decentralization. The supply of healthcare resources in China has clearly witnessed slower growth in the last two decades during which the fiscal decentralization process has taken place. Using China's provincial panel data, we examine the determinants of healthcare resource supply while paying particular attention to the role of fiscal decentralization. We find that the supply of healthcare resources is inversely related to the degree of decentralization, which, using spatial econometrics, is attributed to the presence of strategic substitutes in healthcare spending across city governments. These findings have important implications for policy makers in making fiscal arrangements among different government tiers. |
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| Keywords: | Healthcare resources Strategic substitutes Decentralization Spatial econometrics |
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