Determinants of FDI in Sub-Saharan African countries: how do investment in healthcare matter?

Date : Jeudi | 2023-11-09 à 12h30
Lieu : Salle des thèses

Lien TEAMS : Cliquer ici pour rejoindre le séminaire doctorant du LÉO

Bienvenu AMAKOUE (LEO, Université d’Orléans)

This paper empirically investigates the effect of healthcare performances on the attractiveness of Foreign Direct Investment (FDI) in Sub-Saharan Africa (SSA). We use panel data covering 38 SSA countries from 2000-2019 and perform a fixed effects (FE) estimation model. We use the Granger non-causality test of Dumitrescu and Hurlin (DH) in a heterogeneous panel to test the causal relationship between healthcare data and FDI. After controlling for other relevant determinants, the main results show that the healthcare system positively affects FDI in SSA. Further analysis shows that this effect is much stronger for countries with high levels of malaria incidence and those with high levels of HIV/AIDS prevalence. Results are robust to alternative estimation methods, alternative healthcare performance measures, and alternative specifications.