Abstract
In this study, our main objective is to find the impact of FDI and external debt on health outcomes in emerging Asian economies from 1991 to 2019. To that end, we have collected data for seven economies: Bangladesh, Malaysia, Philippines, Thailand, Sri Lanka, China, and India. We have relied on the panel ARDL (PARDL) method for empirical analysis. The study's findings confirmed that the debt has increased infant mortality and decreased life expectancy in emerging Asian economies in the long run. On the other side, the FDI causes infant mortality to fall and life expectancy to rise in the long run in emerging Asian economies. Similarly, the health expenditures also reduced the infant mortality rate, though the impact is insignificant, and improved the life expectancy in emerging Asian economies. The causal analysis confirmed the two-way causality between health expenditure, infant mortality, and health expenditure and debt.
Highlights
Since the last few decades, a sharp increase has been observed in external debt in several economies [1]
This section reports the findings of cross-sectional dependence (CD) tests, unit root tests, co-integration tests, and panel ARDL regression for outcomes
Before the empirical investigation of external debt-foreign direct investment (FDI)-health nexus, it is required to check the stationary properties of data
Summary
Since the last few decades, a sharp increase has been observed in external debt in several economies [1]. To fill the existing vacuum present study aims to explore the effects of external debt and FDI on health outcomes in an emerging Asian economy. Infant (per 1,000 live births) Life expectancy at birth, total (years) Central government debt, total (% of GDP) Foreign direct investment, net inflows (% of GDP) GDP per capita (constant 2015 US$) Trade (% of GDP) Current health expenditure (% of GDP). The study determines to examine the impact of external debt and FDI on health conditions of selected emerging Asian economies for the period 1991–2019. These economies include Bangladesh, China, India, Malaysia, the Philippines, Sri Lanka, and Thailand. Long-run DEBT FDI HE GDP TRADE Short-run D(DEBT) D(DEBT(−1)) D(FDI) D(FDI(−1)) D(HE) D(HE(−1)) D(GDP) D(GDP(−1)) D(TRADE) D(TRADE(−1)) C Diagnostics Log-likelihood Kao-cointegration ECM(−1)
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