Does universalization of healthcare coverage promote inward FDI in health sectors? an empirical investigation using panel data of 59 countries

The paper investigates the effect of universal healthcare coverage (UHC) on FDI net inflows into health sectors across 59 countries from 2000 to 2021, using multiple specifications and control variables. The findings demonstrate a consistent and statistically significant impact of UHC and FDI inflows in health sectors where the elasticity estimation of the increase in FDI net inflows ranges from 0.0003% to 0.0004% for each 1-point increase in UHC score. These results indicate the economic attractiveness of countries with comprehensive healthcare systems. The results suggest that the universalization of healthcare coverage is a determinant of FDI in health sectors. Therefore, policymakers should consider generalizing healthcare coverage services to attract FDI in health sectors, thereby stimulating economic growth and improving healthcare outcomes.