Covid-19 and recalibration of FDI regimes: convergence or divergence?

Sharma, Basu

doi:10.1080/19186444.2021.1890433

Cited by 17 publications

(12 citation statements)

References 11 publications

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“…The dynamic nature of FDI in the Balkans is being impacted by several emerging trends. First, the global phenomenon of divestiture has been noted earlier (OECD, 2017;Arte & Larimo, 2019), and will likely be intensified by COVID-19 (Sharma, 2021, UNCTAD, 2021. Second, given the demonstrated importance of economic integration for FDI (Bandelj, 2010;Bitzenis, 2016;Kekic, 2005), disruptions in Balkan countries' EU accession progress will be detrimental to FDI inflows from other European origin countries.…”

Section: Suggestions For Policy and Further Researchmentioning

confidence: 93%

“…FDI is widely regarded as a potential engine for economic growth, particularly in Europe's post-socialist transition countries, which include the successor states of Yugoslavia (Hunya, 2000a(Hunya, , 2008Dicken, 2015;Estrin, 2017). UNCTAD (2017) data indicate that global FDI growth over the long term has been strong, despite periodic and localized decreases in FDI as observed following international conflicts, the 2008 Global Financial Crisis (GFC), and the COVID-19 pandemic (Sharma, 2021;UNCTAD, 2021). Excluding such disruptions, most of the states under investigation in this paper have experienced steady FDI growth since independence (WIIW, 2018).…”

Section: Introductionmentioning

confidence: 99%

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FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries

2022

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This research examines FDI location choice across the successor states of Yugoslavia roughly 25 years after dissolution. Based upon 12,245 pairwise observations from 2005 to 2016, the paper employs logit models to estimate empirically the impact of geographic distance, cultural similarity, and geo-cultural interaction on FDI propensity. The contributions are twofold. First, while geographic distance and culture similarity are typically modeled as independent FDI determinants, their interaction is also examined here. Second, the paper contributes to the sparse scholarship on FDI in this complex European region, using binary-choice models to highlight its linkages to the global economy. The findings suggest that—in addition to mainstream economic, regulatory, and political factors—a tradeoff exists between distance and culture in attracting FDI. Host governments seeking FDI that promotes economic growth might increase the likelihood of FDI by targeting geographically-proximate partners that are culturally similar. The role of geographic distance in reducing FDI propensity gives way to other enabling variables beyond the distance of 1800 km.

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Section: Suggestions For Policy and Further Researchmentioning

confidence: 93%

Section: Introductionmentioning

confidence: 99%

FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries

2022

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“…For instance, Phan and Narayan [ 7 ] assess the pandemic impact on stock price, Gil-Alana and Monge [ 8 ] focus on its impact on oil price, whereas Narayan [ 9 ] based his study on the exchange rate, and Vidya and Prabheesh [ 10 ] investigate the impact of the virus on international trade. Meanwhile, recent studies [see [ 6 , 11 , 12 ] focus on the economic implication of the global pandemic on FDI flows. However, none of these studies considered the effect of the COVID-19 pandemic on FDI flows in OECD countries.…”

Section: Introductionmentioning

confidence: 99%

“… 2 See Duan et al [ 26 ], Fu et al [ 6 ]; Sharma [ 11 ] for empirical survey on impact of COVID-19 on FDI. …”

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confidence: 99%

Does COVID-19 shock endanger the flows of FDI in OECD? Empirical evidence based on AMG panel estimator

2022

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The role of foreign direct investment flows in the growth and development of any nation cannot be overemphasized. However, different economic issues influence the pattern and flow of several investment channels. Notable among such economic crises is the recent COVID-19 pandemic that ravaged the entire global economy and restricted the flow of foreign investment among countries. With the perceived influence of the pandemic on businesses and investments, this study investigates the impact of COVID-19-related shock on the FDI flows of OECD countries. Using the Augmented Mean Group (AMG) long-run estimator, it reveals that the COVID-19 shock harms FDI inflows across OECD but enhances the outflows of FDI from OECD. Furthermore, the comparative analysis of the Eurozone and non-Eurozone countries in OECD shows that the effect of COVID-19 shock on FDI flows is positive in the former but otherwise in the latter. Hence, the monetary authorities of these countries must implement favorable monetary policies that will enhance new and ongoing investments as well as the expansion of industrial activities. Also, policymakers in this region should encourage the formulation of economic frameworks that are resilient to several global and country-specific economic uncertainties to safeguard the economies from unforeseen circumstances.

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“…For example, the Chinese government has hosted the China International Import Expo for three consecutive years. While the COVID‐19 pandemic is still raging around the world (Sharma, 2021), the global economy has been hit hard, and the Chinese economy has gradually recovered. The Chinese government's continuous release of signals to expand imports is of great significance to the world economy.…”

Section: Introductionmentioning

confidence: 99%

New driving force for China’s import growth: Assessing the role of cross‐border e‐commerce

Guo

Zhang

2021

World Economy

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This paper investigates the role of cross‐border e‐commerce on China's import growth, using the promulgation of cross‐border e‐commerce‐related policies since 2012 as a quasi‐natural experiment and using the ‘Cross‐border E‐commerce Retail Import Commodity List’ to identify cross‐border e‐commerce industries. Our difference‐in‐difference results show that cross‐border e‐commerce has significantly boosted China's import growth. Dynamic effects show that while China's imports were low prior to 2012, cross‐border e‐commerce has increased China's imports significantly since 2012, verifying the validity of our baseline results. Placebo tests and a series of robustness checks further confirm the validity and robustness of the baseline results. Further analysis reveals that cross‐border e‐commerce has mainly promoted imports from developed countries, and primarily facilitated imports of clothing, food and daily necessities. Mechanism analysis shows that cross‐border e‐commerce not only stimulated both the intensive and extensive margins in import growth, but also reduced cultural distances and increased China's imports from countries with larger cultural distances substantially. However, geographical and institutional distances still matter and exhibit significantly negative effects on China's cross‐border e‐commerce imports.

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Covid-19 and recalibration of FDI regimes: convergence or divergence?

Cited by 17 publications

References 11 publications

FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries

FDI propensity and geo-cultural interaction in former Yugoslavia: pairwise analysis of origin and destination countries

Does COVID-19 shock endanger the flows of FDI in OECD? Empirical evidence based on AMG panel estimator

New driving force for China’s import growth: Assessing the role of cross‐border e‐commerce

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