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.
How to Cite This Article
Asiedu, Elizabeth; Jin, Yi; and Kanyama, Isaac K.
"The impact of HIV/AIDS on foreign direct investment: Evidence from Sub-Saharan Africa,"
Journal of African Trade: Vol. 2:
1, Article 1.