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The Effect of Foreign Direct Investment and Economic Growth on Health: An Empirical Investigation for Türkiye

Author

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  • Seda KUTLUER
  • Zafer ÇALIÅžKAN

Abstract

This study aims to investigate the effect of foreign direct investment (FDI) on health for the period of 1975-2018 in Türkiye by using a health production function approach. Life expectancy at birth which is the dependent variable in the study is used as a proxy for the average health status of Turkish citizens. FDI is defined as the ratio of foreign direct investment to GDP. In order to provide optimal estimates of cointegrating relationship, the Fully Modified OLS (FMOLS) developed by Phillips & Hansen (1990) is preferred as the main estimation method, as it allows for endogeneity of explanatory variables. The findings of the study point out that foreign direct investment inflows reduce life expectancy in Türkiye.

Suggested Citation

  • Seda KUTLUER & Zafer ÇALIÅžKAN, 2024. "The Effect of Foreign Direct Investment and Economic Growth on Health: An Empirical Investigation for Türkiye," Fiscaoeconomia, Tubitak Ulakbim JournalPark (Dergipark), issue 2.
    • Handle: RePEc:fis:journl:240207
    DOI: 10.25295/fsecon.1423647
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    Keywords

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • I10 - Health, Education, and Welfare - - Health - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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