Impact of the Global COVID-19 Pandemic on FDI: Evidence from a Small Open Economy

Zameelah Khan Jaffur, Boopen Seetanah, Verena Tandrayen-Ragoobur, Sheereen Fauzel and Viraiyan Teeroovengadum
Authors registered in the RePEc Author Service: Verena Tandrayen Ragoobur

No 333443, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This study sets out to empirically examine the effect of the outbreak of the global COVID-19 pandemic on the foreign direct investment flows of a small open economy, Mauritius. A preliminary analysis of the monthly gross direct investment flows data clearly shows that in general, the series departed from their original trends after the outbreak of the pandemic. As such, we employ the newly developed Bayesian structural time series (BSTS) framework for causal analysis to determine the initial impact of the pandemic on the gross direct investment flows of the country. The results indicate that the outbreak of the pandemic negatively affected investments coming from South Africa, Switzerland, Belgium, China and Reunion and those in the “Real Estate Activities” sector. Surprisingly, a considerable increase was observed for the “Manufacturing” sector. Our findings also reveal that in the long run, gross direct investment flows from some countries and in some sectors will surely be influenced by the pandemic although this was not obvious at the time of the investigation. However, this will be highly dependent upon the measures taken by the country and worldwide to contain the spread of the pandemic.

Keywords: International Relations/Trade; International Relations/Trade (search for similar items in EconPapers)
Pages: 16
Date: 2022
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/333443/files/11029.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333443

Access Statistics for this paper

More papers in Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().