China's economic transition necessitates a shift from factor-driven to innovation-driven growth, increasing the demand for Health Human Capital (HHC). This study emphasizes the crucial role of HHC in boosting individual and societal productivity, ultimately leading to enhanced economic growth. The "Healthy China 2030" Plan and the 14th Five-Year Plan highlight the national strategic priority of building a healthy population. The researchers define HHC as encompassing physical, mental, social, and moral well-being, aligning with the World Health Organization's definition. Given China's aging population and diminishing population dividend, improving HHC is vital for sustaining economic growth and transitioning from a population burden to a human capital advantage. The study aims to comprehensively measure HHC at a macro level and explore its impact on economic growth, informing the development of effective health policies to support sustainable development.

Existing literature on HHC measurement employs various approaches, including mortality rates, life expectancy, and multi-factor indices. However, life expectancy alone may not fully capture health aspects like morbidity and disability. Studies incorporating multiple dimensions of health, such as those by the European Commission for Public Health (health services, socio-economic conditions, lifestyle, and environmental factors), are more comprehensive. Research on the HHC-economic growth relationship reveals a complex interplay. While good health enhances productivity and income, excessive health investment could crowd out other production factors. Studies often focus on either macro-level national indicators or micro-level individual data. The study addresses the lack of a standardized HHC measurement system by proposing a new index.

The study constructs an HHC index using 18 indicators across four dimensions: basic health, preventive healthcare, medical resources and quality, and healthy environment. Data from sources such as the World Bank and China Statistical Yearbooks (2005-2020) were used. The entropy weight method was applied to assign weights to each indicator, ensuring impartial allocation. Data normalization was performed using a 0-1 standardization method to handle positive and negative indicators. The HHC composite index was calculated using a linear weighted synthesis method. The researchers then employed a Cobb-Douglas production function to model the relationship between HHC and economic growth, considering per capita GDP as the dependent variable and controlling for factors like physical capital stock, educational human capital, government expenditure, and the proportion of the working-age population. The analysis included OLS, random effects (TE), fixed effects (FE), and two-way FE models. To address endogeneity, the study uses the instrumental variable-two-stage least squares estimation method (IV-2SLS), with the first-order lag of HHC as an instrumental variable. Panel quantile regression was used to examine the heterogeneity of the HHC effect across different quantiles of GDP per capita. Finally, a regional heterogeneity analysis was performed to compare the impact of HHC on economic growth in Northern and Southern China, using the Qinling-Huaihe River line as a dividing point.

The study found a steady increase in China's HHC index from 2005 to 2019 (36.72 to 58.35), with a significant jump in 2009 following the introduction of the new medical reform plan. Regional disparities exist, with eastern China exhibiting higher HHC levels compared to western and northeastern regions. Econometric analysis confirms a significant positive correlation between HHC and economic growth. The two-way FE model shows that a 1% increase in HHC leads to a 0.48% increase in per capita GDP, while a 1% increase in the working-age population ratio leads to a 0.94% increase and a 1% increase in per capita government expenditure leads to a 0.27% increase. The impact of HHC is stronger in more economically developed regions and is more pronounced in southern China compared to the north. Robustness checks using alternative control variables and outlier adjustments confirm these results. The IV-2SLS method used to address endogeneity issues further solidifies the positive relationship between HHC and economic growth. Panel quantile regression revealed that the positive impact of HHC on economic growth is consistent across different quantiles of per capita GDP, with a slightly stronger effect at higher quantiles. A regional heterogeneity test using the Qinling-Huaihe River line as a dividing point indicates a more significant positive effect of HHC on economic growth in southern China compared to the north.

The findings support the hypothesis that HHC is a significant driver of economic growth in China, addressing the research question by demonstrating a quantifiable positive relationship. The results highlight the importance of health investments for overall economic development, particularly in already developed regions. The regional disparities in HHC and its impact on economic growth underscore the need for targeted policies focused on equitable resource allocation and healthcare access. The strong positive impact of the working-age population highlights the demographic challenges faced by China and the need to maximize the productivity of its workforce. The study's findings contribute significantly to the existing body of knowledge on human capital and economic growth by providing comprehensive macro-level analysis of HHC and its spatial heterogeneity.

This study provides compelling evidence of the positive relationship between HHC and economic growth in China. The development of a comprehensive HHC index and the application of rigorous econometric techniques contribute valuable insights into this relationship. The findings highlight the need for continued investment in HHC, with a specific focus on reducing regional disparities and improving the efficiency and equity of resource allocation. Future research could explore the specific mechanisms through which HHC affects economic growth, examine the role of technological advancements in healthcare, and investigate the long-term sustainability of HHC-driven economic growth.

While the study employs a comprehensive methodology and addresses endogeneity, certain limitations remain. The reliance on aggregate data may mask variations at the individual level. The chosen indicators may not fully capture the complexity of HHC, and the study's focus is on China, limiting generalizability to other contexts. External factors affecting economic growth not explicitly considered in the model could influence the results. Future research could use more disaggregated data and expand the number of indicators to address these limitations.