The impact of HIV/AIDS on foreign direct investment: Evidence from Sub-Saharan Africa

Elizabeth Asiedu, Yi Jin () and Isaac Kanyama
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Yi Jin: Monash University

Journal of African Trade, 2015, vol. 2, issue 1, 1-17

Abstract: Abstract We construct a theoretical model that examines the relationship between HIV/AIDS and foreign direct investment and employ panel data from 41 countries in Sub-Saharan Africa (SSA) to test the implications of the model. We find that HIV/AIDS has a negative but diminishing effect on FDI. Furthermore, the adverse effect occurs even when the HIV prevalence rate is as low as 0.1%. The result has important policy implications for SSA countries.

Keywords: Foreign direct investment; HIV/AIDS (search for similar items in EconPapers)
JEL-codes: F21 I15 O19 (search for similar items in EconPapers)
Date: 2015
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Working Paper: The Impact of HIV/AIDS on Foreign Direct Investment: Evidence from Sub-Saharan Africa (2012)
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DOI: 10.1016/j.joat.2015.01.001

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