What is it about?

Spatial effects are often overlooked in economic growth models. Meanwhile, the importance of human capital in economic growth has been emphasied in the literature. This paper combines the role of human capital and examines the spatial spillover effects of human capital as labour mobility can lead to spillover effects on economic growth. Furthermore, spatial spillover effects captures the competitive behaviour between provincial governments.

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Why is it important?

This study contribtes to the literature on the effects of healtha nd education investment and its impact of economic growth in a novel manner as it considers the strategic interaction between provinces in terms of spatial spillovers. This can provide policy implications to improve the quality of the health and education industry for regional governments.

Perspectives

This paper was part of my PhD thesis and was my first paper using spatial regression models. It took me a while to understand the intuition but simply explained, the intuition behind spatial autoregressive model is analogous to "keeping up with the Joneses. If my neighbour buys a car today, I want to buy a car tomorrow. So if regional government A improves health and education investment, neighbouring government B will want to improve its health and education investment tomorrow.

Dr Hazwan Haini
Universiti Brunei Darussalam

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This page is a summary of: Spatial spillover effects of public health and education expenditures on economic growth: evidence from China’s provinces, Post-Communist Economies, February 2020, Taylor & Francis, DOI: 10.1080/14631377.2020.1722586.
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