Impact of the Covid-19 Pandemic on Foreign Direct Investment

Marjanović, Darko and Domazet, Ivana and Jovičić, Elena (2022) Impact of the Covid-19 Pandemic on Foreign Direct Investment. In: International Symposium Engineering Management and Competitiveness. Technical Faculty "Mihajlo Pupin", Zrenjanin, pp. 231-236. ISBN 978-86-7672-353-9

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Abstract

Foreign direct investment is an important instrument in the economic growth and development of each national
economy. At the same time, they are considered one of the key elements of the globalization process, as they
significantly affect the mobility of production factors and world trade flows. Decisions on location choice and
form of investment can be made by foreign investors depending on the political and economic situation in the
country or the development and stability of specific sectors. The main goal of this paper is to determine whether
the crisis caused by the COVID-19 virus has affected FDI mobility. That is, whether in 2020, as the first year of
the pandemic, compared to the previous period (2018-2019), there were significant changes in FDI flows. The
period covered by the research is from 2018 to 2020. The methodology applied in this research is based on a
quantitative approach using available secondary data from the UNCTAD database. The results show that the
crisis caused by the COVID-19 virus contributed to a significant reduction in the fluctuation of capital.
Specifically, total FDI decreased by about 35% in 2020 compared to 2019, which indicates the negative impact
of the COVID-19 crisis on FDI flows.

Item Type:	Book Section
Additional Information:	COBISS.ID=69087497
Uncontrolled Keywords:	foreign direct investment, competitiveness, COVID-19, crisis
Research Department:	Macroeconomics
Depositing User:	Jelena Banovic
Date Deposited:	21 Oct 2022 13:09
Last Modified:	21 Oct 2022 13:09
URI:	http://35.240.28.64/id/eprint/1819
Author Links:	[error in script] No links available.

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