Does good health attract FDI?


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Yes –or at least for developing countries-, according to ‘The Effect of Population Health on Foreign Direct Investments.’ The main conclusion of the three Harvard School of Public Health authors is that:

A one-year improvement in life expectancy contributes to about a 9% increase in gross FDI inflows to low- and middle-income countries. Our findings are consistent with the literature that links health to increased worker productivity and suggest that the payoff to population health improvements should also include an elevated rate of FDI inflows.

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April 01, 2006

Curious why foreign investors will be interested in life expectancy? People over age of 30 are already useless for their assembly lines. I guess there are something else driving both: some improvement in fundamentals improve healthcare and also attract FDIs. Another reason could be that these foreign companies are interested in the senior markets (medical equipments, etc). Also, demograhic switch toward more aging society can soften the militant sentiment of some countries that traditioanlly dislike "capitalists".