IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/122553.html
   My bibliography  Save this paper

The impact of COVID-19 and the Russia-Ukraine War on foreign direct investment: A panel quantile regression analysis

Author

Listed:
  • Beri, Parfait Bihkongnyuy
  • Mhonyera, Gabriel
  • Ho, Sin Yu

Abstract

This paper examines the effects of the COVID-19 pandemic and the Russo-Ukrainian war on FDI in central and eastern European countries (CEECs) from 2020Q1 to 2022Q2. Using the panel quantile regression, it finds that COVID-19 and the conflict had a detrimental impact on the largest FDI recipient countries but not on those in the lower quantiles. Therefore, CEECs should encourage FDI inflows from several sources to reduce vulnerability to shocks and the consequences they bring, diversify investments, and conduct a thorough analysis to identify sectors most affected, and tailor policies to address the sustainable inflow of FDI from those sectors.

Suggested Citation

  • Beri, Parfait Bihkongnyuy & Mhonyera, Gabriel & Ho, Sin Yu, 2024. "The impact of COVID-19 and the Russia-Ukraine War on foreign direct investment: A panel quantile regression analysis," MPRA Paper 122553, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122553
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/122553/1/MPRA_paper_122553.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wladimir Andreff & Giovanni Balcet, 2013. "Emerging countries’ multinational companies investing in developed countries: at odds with the HOS paradigm?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 10(1), pages 3-26, April.
    2. Jorge Bermejo Carbonell & Richard A. Werner, 2018. "Does Foreign Direct Investment Generate Economic Growth? A New Empirical Approach Applied to Spain," Economic Geography, Taylor & Francis Journals, vol. 94(4), pages 425-456, August.
    3. Zhou, Dongsheng & Li, Shaomin & Tse, David K., 2002. "The impact of FDI on the productivity of domestic firms: the case of China," International Business Review, Elsevier, vol. 11(4), pages 465-484, August.
    4. Peter J. Buckley & Mark Casson, 1985. "The Economic Theory of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-05242-4.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tang Linghui, 2002. "Incomplete contracts And Vertically Integrated Multinational Enterprises," International Economic Journal, Taylor & Francis Journals, vol. 16(1), pages 127-138.
    2. Subramanian Rangan & Metin Sengul, 2009. "Information technology and transnational integration: Theory and evidence on the evolution of the modern multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1496-1514, December.
    3. Clegg, Jeremy & Lin, Hsin Mei & Voss, Hinrich & Yen, I-Fan & Shih, Yi Tien, 2016. "The OFDI patterns and firm performance of Chinese firms: The moderating effects of multinationality strategy and external factors," International Business Review, Elsevier, vol. 25(4), pages 971-985.
    4. Sourafel Girma & Steve Thompson & Peter Wright, 2006. "International Acquisitions, Domestic Competition and Firm Performance," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(3), pages 335-349.
    5. Arvanitis, Spyros & Hollenstein, Heinz & Stucki, Tobias, 2016. "Does the explanatory power of the OLI approach differ among sectors and business functions? Evidence from firm-level data," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-46.
    6. Christian Bellak, 1999. "Explaining Foreign Ownership By Comparative and Competitive Advantage: Empirical Evidence," Department of Economics Working Papers wuwp062, Vienna University of Economics and Business, Department of Economics.
    7. Roberto Basile & Anna Giunta & Jeffrey Nugent, 2003. "Foreign Expansion by Italian Manufacturing Firms in the Nineties: an Ordered Probit Analysis," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(1), pages 1-24, August.
    8. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    9. Bhattacharya, Mita & Okafor, Luke Emeka & Pradeep, V., 2021. "International firm activities, R&D, and productivity: Evidence from Indian manufacturing firms," Economic Modelling, Elsevier, vol. 97(C), pages 1-13.
    10. Chris Wagner, 2020. "Deducing a state-of-the-art presentation of the Eclectic Paradigm from four decades of development: a systematic literature review," Management Review Quarterly, Springer, vol. 70(1), pages 51-96, February.
    11. Maria Moschandreas, 1997. "The Role of Opportunism in Transaction Cost Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 31(1), pages 39-58, March.
    12. Behl, Abhishek & Jayawardena, Nirma & Ishizaka, Alessio & Gupta, Manish & Shankar, Amit, 2022. "Gamification and gigification: A multidimensional theoretical approach," Journal of Business Research, Elsevier, vol. 139(C), pages 1378-1393.
    13. Gatignon, Aline & Gatignon, Hubert, 2010. "Erin Anderson and the Path Breaking Work of TCE in New Areas of Business Research: Transaction Costs in Action," Journal of Retailing, Elsevier, vol. 86(3), pages 232-247.
    14. Eduardo Polloni-Silva & Diogo Ferraz & Flávia de Castro Camioto & Daisy Aparecida do Nascimento Rebelatto & Herick Fernando Moralles, 2021. "Environmental Kuznets Curve and the Pollution-Halo/Haven Hypotheses: An Investigation in Brazilian Municipalities," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    15. Henk Kox, 2001. "Exposure of the business services industry to international competition," CPB Document 10.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    16. Huu Thanh Tam Nguyen & Manh Hung Nguyen & Aditya Goenka, 2013. "How does FDI affect corporate tax revenue of the host country?," Documents de recherche 13-03, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    17. Vachani, Sushil, 2005. "Problems of foreign subsidiaries of SMEs compared with large companies," International Business Review, Elsevier, vol. 14(4), pages 415-439, August.
    18. Peter Heslam & Ian Jones & Michael Pollitt, 2009. "How a Social Capital Approach can help Multinationals show Ethical Leadership," Working Papers wp388, Centre for Business Research, University of Cambridge.
    19. Luo, Yadong & Tan, J. Justin, 1998. "A comparison of multinational and domestic firms in an emerging market: A strategic choice perspective," Journal of International Management, Elsevier, vol. 4(1), pages 21-40, July.
    20. Casson, Mark & Porter, Lynda & Wadeson, Nigel, 2016. "Internalization theory: An unfinished agenda," International Business Review, Elsevier, vol. 25(6), pages 1223-1234.

    More about this item

    Keywords

    FDI; COVID-19; CEECs; Russia; Ukraine; quantile regression;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F2 - International Economics - - International Factor Movements and International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:122553. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.