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

Elizabeth Asiedu · Yi Jin · Isaac Kalonda Kanyama

105 citations0/0 files storedJournal of African Trade

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International Business and FDI Global trade and economics HIV/AIDS Impact and Responses

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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