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

Author

Listed:
  • Elizabeth Asiedu

    (University of Kansas)

  • Yi Jin

    (Monash University)

  • Isaac K. Kanyama

    (University of Johannesburg)

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.

Suggested Citation

  • Elizabeth Asiedu & Yi Jin & Isaac K. Kanyama, 2015. "The impact of HIV/AIDS on foreign direct investment: Evidence from Sub-Saharan Africa," Journal of African Trade, Springer, vol. 2(1), pages 1-17, March.
    • Handle: RePEc:spr:jouafr:v:2:y:2015:i:1:d:10.1016_j.joat.2015.01.001
    DOI: 10.1016/j.joat.2015.01.001
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    More about this item

    Keywords

    Foreign direct investment; HIV/AIDS;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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