FDI During the First Covid-19 Year in a Developing Country

Abstract

This study addresses the FDI flows into developing countries during the first COVID-19 pandemic year, regarding their resilience countries or not. From a realistic perspective, unlike previous crises, the Covid-19 pandemic is a health crisis affecting all of society, and secondly an economic crisis. We Used the percentage change in FDI flows between 2018-2019, and 2020 and other explaining indicators to illustrate the effects. the results revealed Covid-19 has affected FDI flows into developing countries severely by negatively affecting FDI flows to you through indices. Infrastructure, education, export, and death rate. In contrast, the positive impact on GDP, the workforce, openness, and trade in services. In terms of countries, the effects of Covid-19 are negative in terms of FDI flows in Asian countries, led by Macao while India and China resisted steadfastly as China focused on IT industries, while India focused on digital investment. The most vulnerable is Africa, which relies on FDI for its growth and development, despite Africa's lag in foreign direct investment flows, while the Central African region resisted due to oil exports, as well as Senegal due to investments in energy in 2020. Finally, the state of weakness also extended to a large extent, Latin American countries appear to have had a history of grappling with structural development challenges before the onset of the pandemic, adding to its impact.

Keywords: FDI, Covid-19, developing countries

DOI: 10.7176/EJBM/15-2-01

Publication date: January 31^st 2023