The Impact of Foreign Direct Investment on Health in Developing Countries

Foreign Direct Investment (FDI) from various channels, directly and indirectly, affects on public health level in community. Accordingly, the major purpose of this study was to evaluate the impact of FDI on health in developing countries.
This study was examined the long-term relationship between health indicator, the share of FDI in GDP, per capita physician, income per capita, enrollment rates in secondary courses and urbanization rate, by using the statistical data of 25 developing countries during the period of 1995-2014 years via Continuously-updated and Fully-Modified (Cup-FM) estimator. The statistical analyzes were performed using the STATA and GAUSS softwares.
Based on the results of the estimation model, the share of FDI in GDP, per capita physician, income per capita, enrollment rates in secondary courses and urbanization rate; improve the health indicator in the long-term. One percent increase in the share of FDI in GDP, reduce the infant mortality rate (IMR) in developing countries by about 0.07 percent, in the long-term.
Providing the necessary conditions for attracting FDI in developing countries, can promote the health in these countries