The relationship between FDI and population health in Sub-Saharan Africa. The role of per-capita income

This paper investigates the relationship between FDI and population health in Sub-Saharan Africa (SSA). Using a sample of 35 SSA countries over the period 1996-2020, results show a positive relationship between FDI and health albeit in a nonlinear way. Indeed, we found that FDI exhibits an inverted U-shaped relationship with life expectancy. Moreover, per-capita income is found to be a channel through which FDI promotes population health. Per-capita income, sanitation and trade openness are found to be determinants of population health. Furthermore, our findings are robust when considering different health proxies, alternative specifications. Finally, we use a system of simultaneous equations and results confirm a bi-directional relationship between FDI and life expectancy. Hence, FDI positively impacts life expectancy and a good health level attracts FDI to the region