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Napiórkowski Tomasz (Szkoła Główna Handlowa w Warszawie)
Impact of COVID-19 Pandemic on Foreign Direct Investment - the World Perspective
Optimum : Economic Studies, 2022, nr 4 (110), s. 67-80, tab., wykr., bibliogr. s. 77-80
COVID-19, Inwestycje bezpośrednie, Inwestycje zagraniczne
COVID-19, Direct investments, Foreign investment
JEL Classification: F21, F23
Purpose - Foreign Direct Investment (FDI) has been considered a robust element of globalization that was chiefly immune to financial and economic threats. However, late 2019 introduced international direct investors to COVID-19, a yet unknown risk factor. The aim of this study is to take a holistic perspective and test a research hypothesis of a negative impact of COVID-19 on relative inward FDI activity on the global scale. Research method - FDI is modelled with a series of literature-based determinants including aggregate independent variables that allowed to overcome the issue of too many FDI determinants and model underspecification simultaneously. A series of tests is run on two models (n = 152 and n = 141) to assure their econometric validity. Results - Results show that number of COVID-19 related cases and number of deaths have not had an impact on relative inward FDI on the world scale. Originality/value/implications/recommendations - Unlike most studies, this one examines relative FDI host attractiveness from a global/holistic perspective, which provides additional analytical context. Such determinants as market size, access to qualified labour force and quality of governance are shown to trump risks associated with COVID-19 in determining FDI activity. Policymakers should focus on economic growth, access to qualified labour force and political stability. Hence, lockdown policies were not the optimum solution. (original abstract)
The Library of University of Economics in Katowice
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