Analysis of the Sensitivity of Health Indicators on the Flow of Foreign Direct Investment

Document Type : Original Article

Authors

1 Master of Economics, University of Mazandaran

2 Professor in Economics, Department of Economics,, University of Mazandaran

3 Professor in Economics, Department of Economics, University of Tehran

Abstract

Although there are many studies on the drivers of FDI inflows, very little attention has been paid to the impact of population health as a specific form of human capital that affects labor productivity. Therefore, according to this necessity, the aim of the current research is to analyze the sensitivity of health indicators on the flow of foreign direct investment for the top 47 science-producing countries that were selected based on the report of the SC imago-Institutions Rankings system. In this regard, the research model was estimated based on the dynamic panel data approach for the period from 2011 to 2020 and the obtained results showed that life expectancy at birth and death rate as two indicators showing the health of the population have significant positive and negative effects on are foreign direct investment inflows; So that with the increase in life expectancy at birth and the decrease in the death rate, the inflow of foreign direct investment increases and vice versa; Therefore, it is concluded that foreign direct investment has a strong and non-fragile sensitivity to health components.

Keywords

References

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