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Measuring the Impact of Population Health and Education on Foreign Direct Investment: Panel Evidence from 46 Countries

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  • Md. Zayeed Hasan Talukdar
  • Md. Al-Amin Parvez

Abstract

This study exploresthe impact of population health and education on inflows of foreign direct investment (FDI) by conducting a panel data analysis of 46 developing countries over the period 1996–2011. We found that that gross inflows of FDI are strongly influenced by population health in developing countries. The result suggests that improving life expectancy by one year increases gross FDI inflows by about 7%. alternative specifications of this panel model also support this view.Also, the estimated model does not bring about any significant relation between education level and FDI in developing countries. The findings are consistent with the hypothesis that population health is an important ohuman capital instrument for developing countries and improved population health is likely to attract higher FDI inflow.

Suggested Citation

  • Md. Zayeed Hasan Talukdar & Md. Al-Amin Parvez, 2017. "Measuring the Impact of Population Health and Education on Foreign Direct Investment: Panel Evidence from 46 Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 7(12), pages 1242-1255.
    • Handle: RePEc:asi:aeafrj:v:7:y:2017:i:12:p:1242-1255:id:1641
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    Cited by:

    1. Juliane Sormain & Michael Ryan, 2023. "Regional healthcare infrastructure disparities and foreign direct investment into Europe," Economics and Business Letters, Oviedo University Press, vol. 12(1), pages 49-61.
    2. Giammanco, Maria Daniela & Gitto, Lara, 2019. "Health expenditure and FDI in Europe," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 255-267.

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