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On the global COVID-19 pandemic and China’s FDI

Author

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  • Fang, Jing
  • Collins, Alan
  • Yao, Shujie

Abstract

The global COVID-19 pandemic has generated serious challenges for the world economy, including cross-border foreign direct investment (FDI). China’s inward FDI (IFDI) and outward FDI (OFDI) are also facing unprecedented risks and challenges. This paper first clarifies the timelines of the pandemic evolving in China, the US, and the rest of the world. It then reflects on China’s past development process of IFDI and OFDI, noting the growth of IFDI and highlighting the risks and challenges for OFDI during and after the pandemic. Empirical evidence for the impact of COVID-19 on FDI is set out. Policy recommendations are then made regarding China’s latest development strategy using the so-called dual circulation to sustain its economic growth with respect to cross-border FDI.

Suggested Citation

  • Fang, Jing & Collins, Alan & Yao, Shujie, 2021. "On the global COVID-19 pandemic and China’s FDI," Journal of Asian Economics, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:asieco:v:74:y:2021:i:c:s1049007821000294
    DOI: 10.1016/j.asieco.2021.101300
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    More about this item

    Keywords

    COVID-19; FDI; OFDI; China; Dual circulation;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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