Spatial Spillover Effect of Government Public Health Spending on Regional Economic Growth during the COVID-19 Pandemic: An Evidence from China

Abstract

The COVID-19 pandemic, which was first reported at the end of 2019, has had a massive impact on the Chinese economy and society. The pandemic has seriously tested the emergency management capabilities of the Chinese government regarding public health. Based on the panel data of 31 provinces in China for the period of 2006-2019, this paper examines the impacts of government public health spending on regional economic growth. Furthermore, the possibility of spatial spillover effects of government public health spending is investigated through spatial econometric analysis. Government public health spending and regional economic growth have significant positive spatial correlation and spatial agglomeration effects. The indicator of government public health spending significantly promotes regional economic growth. In addition, it significantly promotes the economic growth of neighboring areas through certain spatial spillovers.