Foreign Direct Investment and child health outcomes in Africa

Figures & data

Table 1. Descriptive statistics

Variable	Obs	Mean	Std. Dev.	Min	Max
Neonatal mortality	1480	35.507	13.334	8.5	82.8
Infant mortality	1514	75.113	35.379	11.8	175.7
Education	1370	34.809	24.884	2.484	115.957
Immunisation	1429	66.841	25.978	1	99
Income	1481	0	5.151	−53.927	31.545
FDI	1500	0	5.164	−31.351	55.11
FDI*Income	1467	3.358	23.992	−324.759	257.458

The zero mean values of Income and FDI are due to mean centering in order to facilitate an intuitive explanation of their individual coefficients due to the introduction of the interaction term in equation 3 (see, Brambor et al., 2006; Sakyi & Egyir, 2017).

Table 2. FE regression estimates of the effect of FDI on child health outcomes in Africa

	(1)	(2)
	Neonatal mortality	Infant mortality
Education	−0.219***	−0.575***
	(0.0530)	(0.126)
Immunisation	−0.227***	−0.546***
	(0.0253)	(0.0676)
Income	−0.00723	−0.0948
	(0.0324)	(0.0923)
FDI	−0.173**	−0.640**
	(0.0667)	(0.275)
FDI*Income	−0.00108	0.00986
	(0.00568)	(0.0214)
Constant	58.43***	131.7***
	(1.875)	(4.951)
Observations	1230	1251
Countries	39	39
Overall R^2	0.719	0.710
F-stat	38.07	32.69
F-stat p-value	0.000	0.000

Cluster robust standard errors in parentheses; * p < 0.1, ** p < 0.05, *** p < 0.01

Table 3. Two-step system GMM estimates of the effect of FDI on child health outcomes in Africa

	(1)	(2)
	Neonatal mortality	Infant mortality
L.Neonatal mortality	0.896***
	(0.0259)
Education	−0.0448***	−0.170***
	(0.0156)	(0.0564)
Immunisation	−0.00205	0.0125
	(0.00796)	(0.0226)
Income	−0.0502*	−0.319***
	(0.0276)	(0.0578)
FDI	−0.0467*	−0.123**
	(0.0233)	(0.0543)
FDI*Income	−0.0364***	−0.0465**
	(0.0123)	(0.0223)
L.Infant mortality		0.899***
		(0.0356)
Constant	3.727**	8.157
	(1.521)	(5.635)
Observations	409	416
Countries	39	39
Instruments	29	31
AR(2)	−1.464	−1.208
AR(2) p-value	0.143	0.227
Hansen	22.53	19.33
Hansen p-value	0.259	0.564
F-stat	3665.6	2946.2
F-stat p-value	0.000	0.000

Standard errors in parentheses;* p < 0.1, ** p < 0.05, *** p < 0.01; Year dummies are not reported due to brevity; L.=first lag of the associated variable.

Brambor, T., Clark, W. R., & Golder, M. (2006). Understanding interaction models: Improving empirical analyses. Political Analysis, 14(1), 63–82. https://doi.org/10.1093/pan/mpi014

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Sakyi, D., & Egyir, J. (2017). Effects of trade and FDI on economic growth in Africa: An empirical investigation. Transnational Corporations Review, 9(2), 66–87. https://doi.org/10.1080/19186444.2017.1326717

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