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The Effect of Population Health on Foreign Direct Investment

  • Marcella Alsan
  • David E. Bloom
  • David Canning

We conduct a panel data analysis of 74 countries over 1980 2000 to investigate whether population health affects foreign direct investment inflows. Our main finding is that health has a positive and significant effect on such inflows for low- and middle-income countries. This finding is consistent with the view that health is an integral component of human capital in developing countries.

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File URL: http://www.nber.org/papers/w10596.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10596.

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Date of creation: Jun 2004
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Publication status: published as Alsan, Marcela, David E. Bloom and David Canning. "The Effect of Population Health on Foreign Direct Investment Inflows to Low- and Middle-Income Countries." World Development 34, 4 (April 2006): 613-630.
Handle: RePEc:nbr:nberwo:10596
Note: HE ITI
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  20. Wheeler, David & Mody, Ashoka, 1992. "International investment location decisions : The case of U.S. firms," Journal of International Economics, Elsevier, vol. 33(1-2), pages 57-76, August.
  21. Rocio Ribero, 1999. "Earnings Effects of Household Investment in Health in Colombia," Working Papers 810, Economic Growth Center, Yale University.
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  24. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
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  26. Schultz, T. Paul & Tansel, Aysit, 1997. "Wage and labor supply effects of illness in Cote d'Ivoire and Ghana: instrumental variable estimates for days disabled," Journal of Development Economics, Elsevier, vol. 53(2), pages 251-286, August.
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