Globalization, foreign direct investment, and child mortality: A cross-national analysis of less-developed countries, 1990–2019

Abstract

Social scientists have long debated the impacts of foreign investment for developing countries. However, the relationship between foreign investment and child mortality is still heavily contested among comparative international social scientists despite decades of research. I bring new cross-national evidence to bear on this contested debate, where the competing arguments of neoclassical economic theory and foreign investment dependency theory are evaluated using fixed effects, dynamic, and two-stage least squares panel regression models. I find that inward foreign direct investment stock exerts a beneficial effect on child mortality in less-developed countries, net of relevant statistical controls. These results are also robust to a variety of regression diagnostics and alternative choices of econometric specification. These findings contribute to a growing body of literature finding that traditional sociological measures of foreign direct investment—in some cases—generate beneficial effects in less-developed countries.