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

  • Céline Azémar
  • Rodolphe Desbordes

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 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. Based on 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.

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Paper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2009_04.

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Date of creation: May 2008
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Handle: RePEc:gla:glaewp:2009_04
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