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The Impact of HIV/AIDS on Foreign Direct Investment: Evidence from Sub-Saharan Africa

Elizabeth Asiedu, Yi Jin () and Isaac Kanyama ()

No 201207, WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS from University of Kansas, Department of Economics

Abstract: We employ panel data from 40 countries in sub-Saharan Africa over the period 1990-2008 to examine whether HIV/AIDS has a causal effect on FDI. We find that HIV/AIDS has a negative but diminishing effect on FDI, and this adverse effect occurs even when the HIV prevalent rate is as low as 0.1 percent. The empirical result is then rationalized by a simple theoretical model.

Keywords: Foreign Direct Investment; HIV/AIDS. (search for similar items in EconPapers)
JEL-codes: F34 F35 I20 O19 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2012-04
New Economics Papers: this item is included in nep-afr, nep-dev and nep-hea
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Citations: View citations in EconPapers (10) Track citations by RSS feed

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Persistent link: https://EconPapers.repec.org/RePEc:kan:wpaper:201207

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