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Human Health and Foreign Direct Investment Nexus: Evidence from South Asia

Amina Shahid, Hafiz Muhammad Abubakar Siddique and Rabia Liaqat
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Amina Shahid: MPhil Scholar, Gift Business School, GIFT University, Gujranwala, Pakistan.
Hafiz Muhammad Abubakar Siddique: PhD Candidate, Department of Economics, Federal Urdu University of Arts, Science, and Technology, Islamabad, Pakistan.
Rabia Liaqat: MPhil Graduate, School of Economics, Quaid-i-Azam University, Islamabad, Pakistan.

Asian Development Policy Review, 2019, vol. 7, issue 3, 209-218

Abstract: Foreign direct investment (FDI) is essential to obtaining a clear view of the prevailing economic landscape within the target country. FDI has also a very close relationship with human health and income. This study is an attempt to investigate empirically the relationship between health, FDI and income in South Asia between 1990 and 2016. The study applied panel ordinary least square (OLS) and fixed effects models. The results of panel OLS showed that FDI, urbanization and education have positive associations with life expectancy. The results also indicate an inverse relationship between income and education with infant mortality. However, FDI and the number of physicians have mixed relations with infant mortality. The outcomes of the fixed effects (FE) model showed that income, FDI, urbanization, education and the number of physicians are factors increasingly affecting the life expectancy rate. The application of the FE model also exposed an inverse association of FDI, income and the number of physicians with infant mortality.

Keywords: Human health; FDI; Education; Income; Fixed effects model; South Asia. (search for similar items in EconPapers)
JEL-codes: I10 F21 (search for similar items in EconPapers)
Date: 2019
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