The generally slow growth rates in the aftermath of the global financial crisis have prompted many nations to pursue the political and economic policies that lead the wave of "anti-globalization". To reflect on the phenomenon of "anti-globalization", we need to have a better understanding of the benefits of globalization and its "hidden" costs. In view that there is no literature to explore the impact of export expansion on health theoretically, this paper made the first attempt to examine the relationship between export expansion and health based on China's powerful context. We consider a framework where workers bargain with their employer, and the firm chooses the optimal capital, labor, and materials based on the maximization of profit function. Each worker chooses the optimal effort level by equalizing the marginal benefit of effort, determined through bargaining, with the marginal cost of effort. Based on an extended Grossman health demand model, we systematically examine the channels through which export expansion affects health, i.e., work intensity, wage rate, income inequality, the provision level of public service, and environmental quality. Finally, we give the corresponding policy implications based on our conclusion.
Key words
export expansion /
health /
Grossman health demand model
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Funding
National Natural Science Foundation of China (71903111); National Social Science Foundation of China (17ZDA040); China Postdoctoral Science Foundation (2019M652414); The Foundation Research Funds of Shandong University (2018GN049)
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