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Effect of foreign direct investment on population health in Africa: Is there any threshold role of governance?

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  • Fabrice Nguegang

    (Faculty of Economics and Management Sciences, University of Bamenda (Cameroon))

Abstract

The aim of this paper is to evaluate the conditional effect of governance into Foreign Direct Investment (FDI) impact on population health captured by life expectancy at birth. The study covers a sample of 41 SSA countries and is conducted across three years of average data over the period 1996-2016. By using the “PTR model” as the main econometric model of analysis and the System GMMs estimator as an alternative technique, our findings show that governance does not have a threshold effect. Nevertheless, this study confirms the “halo hypothesis” of pollution in SSA. Moreover, governance measured by Kaufmann, Kraay and Mastruzzy indicators, plays a favorable mediating role in the nexus between FDI and population health.

Suggested Citation

  • Fabrice Nguegang, 2023. "Effect of foreign direct investment on population health in Africa: Is there any threshold role of governance?," Economics Bulletin, AccessEcon, vol. 43(2), pages 1172-1184.
    • Handle: RePEc:ebl:ecbull:eb-20-00430
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    More about this item

    Keywords

    Population health; FDI; governance; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

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

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