Government Response and Economic Recovery under Public Health Emergencies:Evidence from City-level Government Procurement in China
Using quarterly data on government healthcare procurement across China spanning 2018-2021,this paper employs a fixed effects model and the instrumental variable method to as-sess the relationship between government public health support and overall economic performance and employment.Results indicate that increased government health procurement significantly contributes to the increase in the average brightness of nighttime lights and the labor force hired in the future third quarter,indicating a positive impact on overall economic performance and em-ployment.Heterogeneity analysis reveals that the effectiveness of local government healthcare procurement in promoting economic recovery increases with marketization.This result implies that a good marketization foundation is an important guarantee that government public health spending can promote a smooth economic and social recovery.Moreover,boosting market confi-dence is a critical mechanism underlying the positive economic impact of local government public health spending.
public health spendinggovernment healthcare procurementsocioeconomic per-formancemarket confidencea facilitating government
万方数据
