The role of health policies for the strategic investment decisions of the international companies

Abstract

This study aims to evaluate the effects of health investments in the country on the decisions of foreign investors are examined. Within this framework, it has been examined whether foreign investments will increase if health investments are increased. In this context, E7 countries are included in the study. On the other hand, Kao and Pedroni panel cointegration analyzes are used in the analysis process of the study. The findings indicate that there is a two-way relationship between health expenditures and FDI. In this context, increasing health investments contribute to the increase of foreign investments in the country. In addition, states give more importance to health investments when foreign investments increase. Hence, it is recommended that countries should pay attention to health expenditures. In this context, the state should primarily invest in the health sector. Moreover, the state should also support private sector investors. It would be appropriate to take some measures regarding this issue. For example, a tax advantage can be provided to private sector investors who want to invest in healthcare. In addition, these investors can also be offered low-interest loans. This matter will provide a serious cost advantage to investors. In this way, it will be possible to increase health investments in the country. Hence, countries will be able to reach their social and economic development goals more easily.