Empirical Analysis Of The Effect Of Foreign Direct Investment On Health Status In Sub-Saharan Africa: What Role For Governance?

kossi Ayenagbo (1)
(1) Department of Economics, Faculty of Economics and Management Science, University of Kara, Togo, BP: 404, Kara /Togo , Togo


Purpose of the study: This study aims to empirically examine how governance affects FDI's impact on the health of inhabitants in Sub-Saharan Africa as indicated by the region's infant and child mortality rates.

Methodology: The econometric approach is employed in this study. A dynamic panel model is used for a sample of 44 Sub-Saharan African nations encompassing 2002 to 2019 to produce empirical results. The Generalized Method of Moments (GMM) approach is utilized to accomplish the goals per the research and data established.

Main Findings: According to the study's results, foreign direct investment (FDI) considerably improves health by lowering baby and child mortality rates. The findings of this study also indicate that better governance, notably the prevention of corruption, has a positive impact on FDI.

Research limitation: The lack of data on a long series is the study's primary limitation. Future studies can concentrate on examining the role of governance in the long-term relationship between FDI and health, with a focus on the marginal impact of the two factors' interplay on health. As a result, it would be important to examine how sectoral FDI affects health outcomes in order to identify the primary pathways by which FDI can reliably affect population health.

Novelty/Originality of the study: This study is unique from other studies in that it suggests that efforts must be taken to fully capitalize on the benefits of FDI. In order to reach health goals, policymakers must use sound ways to enhance governance indicators in order to attract FDI further. Additionally, the quality of governance is a high key influencer of the characteristics that attract investors.

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kossi Ayenagbo
ayenagbo@yahoo.fr (Primary Contact)
Author Biography

kossi Ayenagbo, Department of Economics, Faculty of Economics and Management Science, University of Kara, Togo, BP: 404, Kara /Togo

The author is a lecturer in economics at the Faculty of Economics and Management Science, University of Kara in Togo. With a PhD of Economics from the Northeast Normal University (NENU) in China 2012. The author has over 6 years working as a lecturer in Economics, Assistant Professor at the Department of Economics at the University of Kara in Togo. The author has been the Vice-Dean and Dean of this faculty. Born 1979, Tohoun,( Prefecture of Moyen-Mono), Togo.

Ayenagbo, kossi. (2022). Empirical Analysis Of The Effect Of Foreign Direct Investment On Health Status In Sub-Saharan Africa: What Role For Governance?. Innovation Journal of Social Sciences and Economic Review, 4(3), 1–08. https://doi.org/10.36923/ijsser.v4i3.167

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