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Health expenditure and FDI in Europe

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  • Giammanco, Maria Daniela
  • Gitto, Lara

Abstract

The quality of local institutions and the governmental measures sustaining Foreign Direct Investments (FDI) are some of the traditional determinants of multinational agglomerations. One institution which has so far been under-investigated is the health system. Yet several empirical contributions have shown that health is a constituent part of human capital (Bloom and Canning, 2004; Alsan et al., 2006; Ogundari and Awokuse, 2018). Therefore, the quality of the health system may be considered an important FDI attractor factor alongside infrastructures, education, labor force and R&D expenditure (Ingram and Silverman, 2002; Blomström, 2006).

Suggested Citation

  • Giammanco, Maria Daniela & Gitto, Lara, 2019. "Health expenditure and FDI in Europe," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 255-267.
    • Handle: RePEc:eee:ecanpo:v:62:y:2019:i:c:p:255-267
    DOI: 10.1016/j.eap.2019.04.001
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    3. Mihaela Onofrei & Anca-Florentina Vatamanu & Georgeta Vintilă & Elena Cigu, 2021. "Government Health Expenditure and Public Health Outcomes: A Comparative Study among EU Developing Countries," IJERPH, MDPI, vol. 18(20), pages 1-13, October.
    4. Valentin Marian Antohi & Romeo Victor Ionescu & Monica Laura Zlati & Cristian Mirica & Nicoleta Cristache, 2022. "Approaches to Health Efficiency across the European Space through the Lens of the Health Budget Effort," IJERPH, MDPI, vol. 19(5), pages 1-20, March.
    5. Ștefan Cristian Gherghina & Liliana Nicoleta Simionescu & Oana Simona Hudea, 2019. "Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries," Sustainability, MDPI, vol. 11(19), pages 1-33, September.
    6. Vyas, Vishal & Mehta, Kiran & Sharma, Renuka, 2023. "The nexus between toxic-air pollution, health expenditure, and economic growth: An empirical study using ARDL," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 154-166.
    7. 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.

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    More about this item

    Keywords

    FDI; Health expenditure; EU countries; Institution based view; Resource based view;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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