Does the Inflow of FDI Boost the Health of the Population in SAARC Countries Evidence from a Panel Data Analysis

Abstract

Purpose:The relationship between foreign direct investment and population health has been the focus of research among researchers in recent years. One of the basic individual rights is a healthy life and decent living conditions, but the SAARC countries are lagging behind in this respect.The goal of this study is to evaluate the effect of foreign direct investment inflows on population health by integrating growth, foreign aid, and human capital into the model for selected SAARC countries. Design/Methodology/Approach:The fixed effect technique based on the Hausman test was implemented through the period of 1996-2018 because of the Panel nature of the data. Findings:Our empirical results indicate that FDI inflows have a positive and significant effect on population health. Increase in FDI inflows in the host country raises the income of the people, as better job opportunities are available to them. Implications/Originality/Value:This research is a crucial step in observing the complicated relationship between Foreign Direct Investment and Population Health. It is expected that this research motivates the debate and enhance the knowledge further in this line of research.Government should provide incentives to the foreign investors by providing concessions in taxes, and better facilities in terms of improved infrastructure.

Keywords

• Foreign Direct Investment
• Population Health
• SAARC countries
• Human Capital
• Foreign Aid