Analyzing the Effect of the COVID-19 on the Global Economy: A Case Study of Its Influence on Africa’s FDI and Foreign Exchange Inflows

Tetteh, Isaac Adjei; Gao, Jin

doi:10.4236/ojbm.2020.86147

Cited by 3 publications

(3 citation statements)

References 4 publications

(4 reference statements)

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“…First, it is large-scale and includes both developing and developed countries [38]. Secondly, it is more impetuous: a shock drop in demand is accompanied by a forced stop of investment projects or postponement of their implementation for an indefinite period of time [34]. Third, while the pandemic does not directly trigger a crisis in the financial sector, it could lead to one if companies fail to meet their earlier financial commitments.…”

Section: Literature Reviewmentioning

confidence: 99%

Risk Management of Foreign Direct Investment: The COVID-19 Crisis Experience

2023

IJAFRM

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The purpose of this study is to develop a methodology for analyzing corporate investment risk in the context of the impact of the COVID-19 pandemic. The research methodology is based on the use of regression analysis and scenario modeling of pandemic investment leverage. The contribution of this study is the proposed methodological approach to assessing investment risks in the context of the spread of coronavirus. Regression analysis made it possible to establish the existence of a sufficient relationship between foreign direct investment (FDI) in the studied countries and the level of pandemic investment leverage. This is the result of the stabilization in FDI sector and confirms the effectiveness of the studied countries in a given direction in the context of a pandemic.

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Section: Literature Reviewmentioning

confidence: 99%

Risk Management of Foreign Direct Investment: The COVID-19 Crisis Experience

2023

IJAFRM

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“…Apart from financial markets, studies have also focused on the implications for international trade, including analyses by Kassa (2020), Obayelu et al (2021), Nitsch (2022), andMena et al (2022), providing insights into these dynamics. Furthermore, substantial attention has been devoted to understanding the pandemic's impact on foreign direct investment, with comprehensive analyses by Tetteh andao (2020), andChattopadhyay et al (2023) shedding light on this critical area. These inquiries extend further, encompassing the broad socioeconomic repercussions of the pandemic, exploring its effects on labor markets, public health, and environmental aspects, as evidenced by studies by Kassa (2020), Njomane and Telukdarie (2022), among others.…”

Section: Introductionmentioning

confidence: 99%

African exchange rates amidst the COVID-19 pandemic

Alshammari

2024

FEL

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<p class="MsoNormal" style="margin-top: 12pt; text-align: justify;"><span lang="EN-US" style="font-family: 'times new roman', times, serif; font-size: 14pt;">The study investigates the impact of COVID-19 on African exchange rates, employing a panel dataset over the period 2016-2022 from 13 African economies and employing pooled OLS estimator. The findings reveal a noteworthy positive correlation between COVID-19 levels and exchange rates within the region. However, this association necessitates deeper exploration due to its multifaceted implications, including economic disruptions, government interventions, global market interconnections, regional stability perceptions, and investor behavior. Economic indicators, such as GDP, inflation rate, real interest rate, and unemployment rate, significantly influence exchange rates. While GDP positively impacts exchange rates through economic growth, investor confidence, and trade strength, controlled inflation fosters investor confidence and export competitiveness, positively affecting exchange rates. Moreover, a pronounced positive impact of the real interest rate indicates economic stability, attracting investment and contributing to currency appreciation. Conversely, high unemployment negatively affects exchange rates, signaling economic weaknesses and eroding investor confidence. These findings emphasize nuanced policy responses for managing health crisis-induced economic disruptions and suggest future research directions focusing on specific country-level analyses and multifaceted factors influencing currency valuations within African economies.</span></p>

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“…As of April 14, 2021, there are more than 138.8 million COVID-19 cases worldwide [2]. COVID-19 is the third epidemic that has hit the world [3]. The outbreak of COVID-19 has had a serious impact on the global economy and almost involves all sectors, all industries and all professions.…”

Section: Introductionmentioning

confidence: 99%

The Main Issues and Countermeasures Facing the Global Economy after the Relaxation of Epidemic Control Policies

Yue

2023

AEMPS

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Due to the COVID-19 epidemic, many countries have taken a number of epidemic prevention and control measures, which have had a huge impact on the global economy. This paper studies the major issues facing the global economy after the relaxation of epidemic control policies, such as economic recession, inflation, debt crisis and energy crisis, and countermeasures. In this paper, corresponding countermeasures are proposed to address economic recession, including increasing government spending, reducing taxes, lowering interest rates, and increasing the money supply and to address the inflation, including reducing government spending, increasing taxes, raising interest rates, and reducing the money supply. In response to the debt crisis, corresponding countermeasures have been proposed from the aspects of strengthening government supervision, adjusting government expenditures, tax rates, interest rates, and money supply. In the light of the energy crisis, this paper puts forward corresponding countermeasures from aspects of improving energy utilization efficiency, reducing energy consumption, developing green energy that can replace traditional energy, and strengthening the supervision of the energy market.

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Analyzing the Effect of the COVID-19 on the Global Economy: A Case Study of Its Influence on Africa’s FDI and Foreign Exchange Inflows

Cited by 3 publications

References 4 publications

Risk Management of Foreign Direct Investment: The COVID-19 Crisis Experience

Risk Management of Foreign Direct Investment: The COVID-19 Crisis Experience

African exchange rates amidst the COVID-19 pandemic

The Main Issues and Countermeasures Facing the Global Economy after the Relaxation of Epidemic Control Policies

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