The Effects of COVID-19 and the Russia-Ukraine War on Inward Foreign Direct Investment

Ms Hosen, Sm Hossain, Mn Mia and Mr Chowdhury

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Abstract: Inward Foreign Direct Investment (IFDI) into Europe and Asian developing countries like Bangladesh is experimentally examined in this study. IFDI in emerging markets has been boosted by global investment and inflow influenced by resource availability and public policy. The economic policy uncertainty on IFDI in 13 countries is explored at a time when the crisis between Russia and Ukraine war is having a global impact. Microeconomic factors affected Gross Domestic Product (GDP) growth, inflation, interest rates, and the currency rate fluctuated with IFDI, which mostly shocked during COVID-19 and the Russia-Ukraine war. With data from the World Bank and the United Nations Conference on Trade and Development (UNCTAD) database, we compile a panel dataset covering 2018-2022. The researchers used a mixture of panel and linear regression analysis using a random effect model. Our findings show that the impact of global rates hurts IFDI in 13 selected countries. There is a correlation between a country's ability to enforce contracts and the amount of Inward FDI it receives. Using the top 13 hosts of incoming FDI flows COVID-19 and Russia-Ukraine wartime series analysis gives valuable information for policymakers in the remaining countries chosen to attract IFDI inflows.

Date: 2024-01
New Economics Papers: this item is included in nep-cis, nep-ifn, nep-int and nep-tra
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Published in International Research Journal of Economics and Management Studies, Vol. 2, No. 4, pp. 408-417, 2023

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