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Mathurin Aimé Mekam Pouatcha, Marilena Giannetti and Elton Beqiraj |
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''The relationship between FDI and population health in Sub-Saharan Africa: The role of per-capita income'' |
( 2024, Vol. 44 No.2 ) |
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This paper investigates the relationship between FDI and population health in Sub-Saharan Africa (SSA). Using a sample of 35 SSA countries over the period 1996-2020, results show a positive relationship between FDI and health albeit in a nonlinear way. Indeed, we found that FDI exhibits an inverted U-shaped relationship with life expectancy. Moreover, per-capita income is found to be a channel through which FDI promotes population health. Per-capita income, sanitation and trade openness are found to be determinants of population health. Furthermore, our findings are robust when considering different health proxies, alternative specifications. Finally, we use a system of simultaneous equations and results confirm a bi-directional relationship between FDI and life expectancy. Hence, FDI positively impacts life expectancy and a good health level attracts FDI to the region. |
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Keywords: Foreign direct investment (FDI), Population health, Sub-Saharan Africa |
JEL: I1 - Health: General F2 - International Factor Movements and International Business: General |
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Manuscript Received : Jun 12 2023 | | Manuscript Accepted : Jun 30 2024 |
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