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

Author

Listed:
  • Elizabeth Asiedu

    (Department of Economics, The University of Kansas)

  • Yi Jin

    (Department of Economics, Monash University)

  • Isaac Kalonda-Kanyama

    (Department of Economics, The University of Kansas)

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.

Suggested Citation

  • Elizabeth Asiedu & Yi Jin & Isaac Kalonda-Kanyama, 2012. "The Impact of HIV/AIDS on Foreign Direct Investment: Evidence from Sub-Saharan Africa," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201207, University of Kansas, Department of Economics.
    • Handle: RePEc:kan:wpaper:201207
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    References listed on IDEAS

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    Cited by:

    1. Kodila-Tedika, Oasis & Khalifa, Sherif, 2020. "Leaders’ Foreign Travel and Foreign Investment Inflows," MPRA Paper 98625, University Library of Munich, Germany.
    2. Simplice A. Asongu & Uchenna Efobi & Belmondo V. Tanankem & Evans S. Osabuohien, 2019. "Globalisation and Female Economic Participation in Sub-Saharan Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 19/005, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    3. Simplice A. Asongu & Uchenna R. Efobi & Belmondo V. Tanankem, 2017. "On the Relationship between Globalisation and the Economic Participation of Women in Sub-Saharan Africa," Research Africa Network Working Papers 17/001, Research Africa Network (RAN).
    4. Jamiu Adetola Odugbesan & Husam Rjoub, 2019. "Relationship among HIV/AIDS Prevalence, Human Capital, Good Governance, and Sustainable Development: Empirical Evidence from Sub-Saharan Africa," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    5. Juan J. DelaCruz, 2018. "Foreign Aid and HIV/AIDS in Latin America and the Caribbean: Should We Adjust the Degree of Response?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(3), pages 337-349, September.

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    More about this item

    Keywords

    Foreign Direct Investment; HIV/AIDS.;

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • I20 - Health, Education, and Welfare - - Education - - - General
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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