The Effect of COVID-19 on Foreign Direct Investment

Publication | March 2022
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This study examines how COVID-19 has impacted foreign direct investment (FDI) using data from 173 home to 192 host countries from the first quarter of 2019 to the second quarter of 2021.

The authors find heterogeneous effects of COVID-19 on FDI by sector and entry mode. The severity of COVID-19 in host countries negatively affected both greenfield FDI and cross-border mergers and acquisitions in the manufacturing sector. But the situation of home countries did not seem to matter. Greenfield FDI in the service sector was affected by the situation in both host and home countries.

Contents

  • Introduction
  • Conceptual Framework
  • Empirical Framework
  • Empirical Results
  • Conclusion

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • COVID-19
  • Industry and trade
Pages
  • 23
Dimensions
  • 8.5 x 11
SKU
  • WPS220092-2
ISSN
  • 2313-6537 (print)
  • 2313-6545 (electronic)

Published Version

Hayakawa, Kazunobu, Hyun-Hoon Lee, and Cyn-Young Park. 2023. "The Effect of COVID-19 on Foreign Direct Investment." Global Economic Review 52 (1): 1–17. https://doi.org/10.1080/1226508X.2023.2171459.

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