Supply-chain disruptions and new investment policies in the post-COVID-19 world: Initial insights from project-level data

Monika Sztajerowska

No 2023/01, OECD Working Papers on International Investment from OECD Publishing

Abstract: The COVID 19 pandemic has inflicted a series of shocks on the global economy, not least impacting global trade and investment. During the same time, several countries adopted new foreign direct investment (FDI) related policies. This paper presents novel preliminary evidence on the effects of these new FDI policies and COVID-19-related supply-chain disruptions on cross-border investment. It employs, among others, granular data on FDI policies and investment projects undertaken in a wide range of sectors in 175 host economies worldwide by investors from 46 home countries. It finds that a combination of FDI policies and COVID-19-related measures has a statistically significant and economically meaningful negative effect on the probability of a new cross-border greenfield investment project occurring during the sample period. The effect is the strongest in sectors with high R&D intensity.

Keywords: COVID-19; de-globalisation; FDI; Foreign direct investment; greenfield; supply chains (search for similar items in EconPapers)
JEL-codes: F15 F21 F23 F52 (search for similar items in EconPapers)
Date: 2023-07-31
New Economics Papers: this item is included in nep-int and nep-ppm
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1787/5fcc2892-en (text/html)

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:oec:dafaaa:2023/01-en

Access Statistics for this paper

More papers in OECD Working Papers on International Investment from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().