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

Author

Listed:
  • Mathurin Aimé Mekam Pouatcha

    (University of Bamenda)

  • Marilena Giannetti

    (University of Rome La Sapienza)

  • Elton Beqiraj

    (University of Rome La Sapienza)

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.

Suggested Citation

  • Mathurin Aimé Mekam Pouatcha & Marilena Giannetti & Elton Beqiraj, 2024. "The relationship between FDI and population health in Sub-Saharan Africa: The role of per-capita income," Economics Bulletin, AccessEcon, vol. 44(2), pages 557-570.
    • Handle: RePEc:ebl:ecbull:eb-23-00264
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Foreign direct investment (FDI); Population health; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • F2 - International Economics - - International Factor Movements and International Business

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