January 1, 2015Open Access

The impact of HIV/AIDS on foreign direct investment: Evidence from Sub-Saharan Africa

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Abstract

We construct a theoretical model that examines the relationship between HIV/AIDS and foreign direct investment and employ panel data from 41 countries in Sub-Saharan Africa (SSA) to test the implications of the model. We find that HIV/AIDS has a negative but diminishing effect on FDI. Furthermore, the adverse effect occurs even when the HIV prevalence rate is as low as 0.1%. The result has important policy implications for SSA countries.

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Asiedu et al. (Thu,) studied this question.

synapsesocial.com/papers/6a1c3077c97d63156a5f6b54 https://doi.org/https://doi.org/10.1016/j.joat.2015.01.001

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