The Effect of Life Expectancy at Birth on the Flow of Foreign Direct Investment

Document Type : Research Paper

Authors

1 Economics, Faculty of Economics, Mazandaran University, Babolsar, Iran

2 Department of Economic Sciences, Faculty of Economic and Administrative Sciences, Mazandaran University, Babolsar

3 Faculty of Economics, University of Tehran

10.30465/jnet.2023.42996.1951

Abstract

Today, one of the most important platforms for increasing economic interactions in the international arena, transferring new technologies and continuing economic growth, is foreign direct investment; Because achieving economic growth and development in any country requires the formation of capital to provide the required financial resources. Therefore, researchers are encouraged to search for specific variables in order to facilitate the attraction of foreign direct investment, among these variables is life expectancy at birth as a special form of human capital. Considering this necessity, the purpose of this research is to investigate the effect of life expectancy at birth on the flow of foreign direct investment in the top 47 science producing countries for the period from 2011 to 2020. For this purpose, the model of the current research was estimated based on the dynamic panel data approach and the results showed that all the studied variables including life expectancy at the beginning of production as an indicator of population health with different estimated coefficients have a positive and significant effect on foreign direct investment; Therefore, it is suggested to the policy makers in order to attract foreign direct investment, in addition to other attraction policies, to implement the human resource development policy such as the policy of promoting health and population health through increasing the budget of the health sector and achieving health infrastructure facilities, so that the health and Improve people's life expectancy and in this way facilitate the attraction of foreign direct investment to the country.

Keywords

References

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History

  • Receive Date: 19 October 2022
  • Revise Date: 01 December 2022
  • Accept Date: 16 December 2022

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