Determinants of China's health expenditure growth: based on Baumol's cost disease theory.

Income and Baumol's cost disease significantly contributed to China health expenditure growth. The health expenditure determinants showed spatial varies effect and space spillover effect on the neighborhood areas. Which indicates that a reasonable salary system should be contrasted to meet the changeling from the Baumol's cost disease, and the necessity of equity in health resource allocation among provinces in China.