The Effect of FDI on Health: DOLS Approach

The Foreign Direct Investment (FDI) is an effective factor on health in host country. The FDI has direct and indirect channels on health in host country. In direct channel, if the foreign firm paid high wage to labor forces and provided them by social services, then the health of host country improves. In indirect channel, the FDI increases the income of host country then this effect increases the demand for health services and finally it improves the public health. The object of this paper is the analysis of FDI impact on public health in OPEC countries. We used the DOLS method for panel data in the period of 1980-2013. The results show the FDI and other factors include economic, environmental and social factors have significant and positive long-run effects on public health in these countries. Therefore, the FDI attraction is an important factor in improving of health in OPEC countries.