Foreign Direct Investment in the Healthcare Sector and Its Potential Benefit for the EU


Akyüz M. , Demir İ.

in: The Growth-Oriented Economic Policy of the EU, Prof. Dr. Angelo Santagostino,Prof. Dr. Burçak Müge Tunaer Vural, Editor, Cambridge Scholars Publishing, Newcastle Upon Tyne, pp.179-201, 2020

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2020
  • Publisher: Cambridge Scholars Publishing
  • City: Newcastle Upon Tyne
  • Page Numbers: pp.179-201
  • Editors: Prof. Dr. Angelo Santagostino,Prof. Dr. Burçak Müge Tunaer Vural, Editor

Abstract

The aim of this exploratoratory chapter is to examine the volume and potential benefits of foreign direct investment (FDI) in health care sector for the EU in the wake of the 2008 global economic crisis. The 2008 crisis brought adverse impacts on economies across the globe and put pressure on countries’ budgets. EU was no exception and some EU members experienced the collapse of financial institutions, high government debts, and increasing bond yield spreads. Bailout packages and tight fiscal monitoring mechanisms implemented in order to mitigate the effects of the crisis. However, these measures worsened the difficulties of financing of health care services across EU. Our findings demonstrate that FDI volume in EU increased as a remedy after the 2008 crisis. FDI in health care services is regarded as additional funding and a means of technology transfer. Whether crisis times lead to a significant increase in FDI volume requires further empirical scrutiny.