The Relationship between COVID-19 Pandemic, Foreign Direct Investment, and Gross Domestic Product in Indonesia

Ferry Syarifuddin and Maman Setiawan
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Ferry Syarifuddin: Bank Indonesia, Gedung D lantai 10, Jln. MH Thamrin No. 2, Jakarta 10350, Indonesia
Maman Setiawan: Department of Economics, Faculty of Economics and Business, Universitas Padjadjaran, Bandung 40132, Indonesia

Sustainability, 2022, vol. 14, issue 5, 1-16

Abstract: This research investigates the impact of the COVID-19 pandemic on foreign direct investment. This research also studies the impact of the COVID-19 pandemic on the relationship between foreign direct investment (FDI) and the gross domestic product (GDP). This research employs a local projection estimation to calculate the effect of the COVID-19 pandemic on foreign direct investment. The panel vector autoregression is applied to estimate the impact of the COVID-19 pandemic on the relationship between FDI and GDP. This research finds variations in the impacts of the COVID-19 pandemic on FDI among economic sectors in Indonesia. Moreover, the relationship between FDI and GDP is affected by the COVID-19 pandemic.

Keywords: foreign direct investment; COVID-19 pandemic; gross domestic product; local projection estimation; panel vector autoregression (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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