FALL INFLOW OF FOREIGN DIRECT INVESTMENTS CAUSED BY COVID-19 PANDEMIC

Authors

Keywords:

pandemic, foreign direct investment, business environment, competitiveness, national economy

Abstract

The aim of this paper is to analyze the impact of the coronary virus pandemic caused by the COVID-19 virus on the inflow of foreign direct investment. The decline in the inflow of foreign direct investments nowadays is a consequence of the contagion, and not the usual elements of their decline. The crisis caused by the COVID-19 virus has negative effects not only on inflows but on the entire flow and flow of foreign direct investment. The interaction of shocks on the supply and demand side, combined with political reactions to the COVID-19 pandemic such as the closure of national borders, triggers a number of negative effects on foreign direct investment. Due to the new situation caused by the COVID-19 pandemic of the country, potential hosts of foreign direct investments by improving the business environment and various incentive measures can hardly attract a larger volume of the same. Many of them are currently working to improve the business environment, precisely because they are aware of the fact that the pandemic will not last indefinitely and that only a stimulating business environment is a key component of the competitiveness of a national economy and greater inflow of foreign direct investment.

References

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Published

2021-03-01