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Public Governance, Health and Foreign Direct Investment in Sub-Saharan Africa

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  • Céline Azémar
  • Rodolphe Desbordes

Abstract

Using 1985--2004 yearly panel data for 70 developing countries, including 28 from Sub-Saharan Africa (SSA), the paper finds that once market size is accounted for, SSA's foreign direct investment (FDI) deficit with other regions of the world is mainly explained by the insufficient provision of public goods: relatively low human capital accumulation, in terms of education and health in SSA. On the basis of additional cross-sectional data, the paper finds that in the absence of HIV and malaria, net FDI inflows in the median SSA country could have been one-third higher during 2000--2004, with slightly more than one-half of this deficit explained by malaria. Copyright 2009 The author 2009. Published by Oxford University Press on behalf of the Centre for the Study of African Economies. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org, Oxford University Press.

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  • Céline Azémar & Rodolphe Desbordes, 2009. "Public Governance, Health and Foreign Direct Investment in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 18(4), pages 667-709, August.
  • Handle: RePEc:oup:jafrec:v:18:y:2009:i:4:p:667-709
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    1. Hauck, K. & Martin, S. & Smith, P.C., 2016. "Priorities for action on the social determinants of health: Empirical evidence on the strongest associations with life expectancy in 54 low-income countries, 1990–2012," Social Science & Medicine, Elsevier, vol. 167(C), pages 88-98.
    2. Lagoarde-Segot, Thomas & Leoni, Patrick L., 2013. "Pandemics of the poor and banking stability," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4574-4583.
    3. Celine Azemar & Julia Darby & Rodolphe Desbordes & Ian Wooton, 2012. "Market Familiarity and the Location of South and North MNEs," Economics and Politics, Wiley Blackwell, vol. 24(3), pages 307-345, November.
    4. Burns, Darren K. & Jones, Andrew P. & Suhrcke, Marc, 2016. "The relationship between international trade and non-nutritional health outcomes: A systematic review of quantitative studies," Social Science & Medicine, Elsevier, vol. 152(C), pages 9-17.
    5. Rodolphe Desbordes & Gary Koop, 2014. "The Known Unknowns of Governance," Working Paper series 38_14, Rimini Centre for Economic Analysis.
    6. Herzer, Dierk & Nunnenkamp, Peter, 2012. "FDI and health in developed economies: A panel cointegration analysis," Kiel Working Papers 1756, Kiel Institute for the World Economy (IfW).
    7. Bailey, Nicholas & Li, Sali, 2015. "Cross-national Distance and FDI: The Moderating Role of Host Country Local Demand," Journal of International Management, Elsevier, vol. 21(4), pages 267-276.
    8. Elizabeth Asiedu & Yi Jin & Isaac Kalonda-Kanyama, 2012. "The Impact of HIV/AIDS on Foreign Direct Investment: Evidence from Sub-Saharan Africa," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201207, University of Kansas, Department of Economics.
    9. repec:eee:socmed:v:181:y:2017:i:c:p:74-82 is not listed on IDEAS
    10. Darby, Julia & Desbordes, Rodolphe & Wooton, Ian, 2009. "Does Public Governance Always Matter? How Experience of Poor Institutional Quality Influences FDI to the South," CEPR Discussion Papers 7533, C.E.P.R. Discussion Papers.
    11. Cleeve, Emmanuel A. & Debrah, Yaw & Yiheyis, Zelealem, 2015. "Human Capital and FDI Inflow: An Assessment of the African Case," World Development, Elsevier, vol. 74(C), pages 1-14.
    12. Metaxas, Theodore & Kechagia, Polyxeni, 2016. "Literature review of 100 empirical studies of Foreign Direct Investment: 1950-2015," MPRA Paper 71414, University Library of Munich, Germany.
    13. repec:eee:iburev:v:27:y:2018:i:1:p:139-148 is not listed on IDEAS

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    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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