The relationship between FDI and population health in Sub-Saharan Africa: The role of per-capita income

Mathurin Aimé Mekam Pouatcha (), Marilena Giannetti and Elton Beqiraj ()
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Mathurin Aimé Mekam Pouatcha: University of Bamenda
Elton Beqiraj: University of Rome La Sapienza

Economics Bulletin, 2024, vol. 44, issue 2, 557 - 570

Abstract: 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.

Keywords: Foreign direct investment (FDI); Population health; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: F2 I1 (search for similar items in EconPapers)
Date: 2024-06-30
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