The Impact of HIV/AIDS on Foreign Direct Investment: Evidence from Sub-Saharan Africa
Yi Jin () and
Isaac Kanyama ()
No 201207, WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS from University of Kansas, Department of Economics
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
New Economics Papers: this item is included in nep-afr, nep-dev and nep-hea
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Persistent link: https://EconPapers.repec.org/RePEc:kan:wpaper:201207
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