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Human Health and Foreign Direct Investment Nexus: Evidence from South Asia


  • Amina Shahid

    (MPhil Scholar, Gift Business School, GIFT University, Gujranwala, Pakistan.)

  • Hafiz Muhammad Abubakar Siddique

    (PhD Candidate, Department of Economics, Federal Urdu University of Arts, Science, and Technology, Islamabad, Pakistan.)

  • Rabia Liaqat

    (MPhil Graduate, School of Economics, Quaid-i-Azam University, Islamabad, Pakistan.)


Foreign direct investment (FDI) is essential to obtaining a clear view of the prevailing economic landscape within the target country. FDI has also a very close relationship with human health and income. This study is an attempt to investigate empirically the relationship between health, FDI and income in South Asia between 1990 and 2016. The study applied panel ordinary least square (OLS) and fixed effects models. The results of panel OLS showed that FDI, urbanization and education have positive associations with life expectancy. The results also indicate an inverse relationship between income and education with infant mortality. However, FDI and the number of physicians have mixed relations with infant mortality. The outcomes of the fixed effects (FE) model showed that income, FDI, urbanization, education and the number of physicians are factors increasingly affecting the life expectancy rate. The application of the FE model also exposed an inverse association of FDI, income and the number of physicians with infant mortality.

Suggested Citation

  • Amina Shahid & Hafiz Muhammad Abubakar Siddique & Rabia Liaqat, 2019. "Human Health and Foreign Direct Investment Nexus: Evidence from South Asia," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(3), pages 209-218, September.
  • Handle: RePEc:asi:adprev:2019:p:209-218

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    References listed on IDEAS

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    More about this item


    Human health; FDI; Education; Income; Fixed effects model; South Asia.;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements


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