Is the economic uncertainty– human health relationship nonlinear? An empirical analysis for the China

Abstract

The health costs of economic uncertainty always remain a major concern among policymakers of China. The theoretical and empirical literature on the economic uncertainty-human health nexus is still in its infancy stage. This study is firmly rooted in the economic uncertainty theory advanced by Baker, Bloom, & Davis. In this study, the primary objective of the analysis is to estimate the asymmetric impact of economic uncertainty on human health in China’s economy. In order to evaluate the short and long-run estimates of economic uncertainty on human health across various quantiles, we have employed the linear and nonlinear QARDL models. The linear QARDL model shows that the long-run relationship between economic uncertainty and the infant mortality rate is positive and significant at all quantiles, while the long-run relationship between economic uncertainty and the death rate is positive and significant at higher quantiles. The nonlinear QARDL model reveals that, in the long run, the relationship between the positive shock of economic uncertainty and the infant mortality rate is positive and significant at quantiles 0.30 to 0.95, while the long-run relationship between the positive shock of economic uncertainty and the death rate is positive and significant at higher quantiles. The relationship between the negative shock of economic uncertainty and the infant mortality rate is negative and significant at the highest quantiles, while the relationship between the negative shock of economic uncertainty and death rate is negative and significant at higher quantiles in the long run. The findings indicate a positive relationship between economic uncertainty in China and higher rates of infant mortality and death. Thus, adopting suitable policies for controlling economic uncertainty can help in improving human health in China.

Impact of Environmental Uncertainty on Depression and Anxiety Among Chinese Workers: A Moderated Mediation Model

“…Environmental uncertainty arises when employees recognize their inability to predict changes in the organizational environment or its components. 22 This uncertainty can manifest in several ways, including technological uncertainty regarding the future direction and application of technology in current development projects for products and services; 22 , 31 the inability to accurately predict government policy or regulatory changes; economic uncertainty stemming from macro phenomena such as global financial crises, changing consumer preferences, political turmoil and international oil price shocks; 32 , 33 the changing social norms and expectations regarding product and service preferences, among others. 4 , 34 Researchers maintain that environments perceived as highly uncertain and turbulent are characterized by rapid change, high risk, a lack of assurance, and a need for greater flexibility and dynamic responsiveness, 35 where even a few mistakes could lead to significant consequences.…”