Tracking Greenfield FDI During the COVID-19 Pandemic: Analysis by Sectors

Title

Tracking Greenfield FDI During the COVID-19 Pandemic: Analysis by Sectors

Creator

Doytch N.; Yonzan N.; Reddy K.; De Beule F.

Description

We study the trends and fluctuations in greenfield foreign direct investment (GFDI) during the first wave of the COVID-19 pandemic crisis on a global scale. We analyse the data of a data set of GFDI provided by fDi Markets (Financial Times) to understand the contraction of GFDI during the first three quarters of the year 2020, taking into account the sector of the investment and the host and home country. We analyse both the long-run trends and the quarter-over-quarter changes in GFDI to capture its fluctuations before and during the first wave of the COVID-19 crisis and the 2008 global financial crisis. Our findings cast light on which countries and industries GFDIs were most affected by the pandemic crisis and draw a comparison to the global financial crisis. To our surprise, many services industries have shown unexpected resilience of GFDI due to the flexibility for remote work. On the contrary, GFDI in the manufacturing industries, as well as the extractives and the utility industries, has shown a dramatic decline during the pandemic. These contractions raise questions of stability and resilience of the global supply chains these industries are a part of. JEL Codes: F21. 2021 Indian Institute of Foreign Trade.

Source

Foreign Trade Review, Vol-56, No. 4, pp. 454-475.

Date

2021-01-01

Publisher

Sage Publications India Pvt. Ltd

Subject

COVID-19 crisis; foreign direct investment (FDI); GFDI countries; GFDI industries; global financial crisis; Greenfield foreign direct investment (GFDI)

Coverage

Doytch N., Brooklyn College, Koppelman School of Business, City University of New York, Brooklyn, NY, United States, Graduate Center, Program in Economics, City University of New York, Brooklyn, NY, United States, School of Government, Ateneo de Manila University, Quezon City, Philippines; Yonzan N., Graduate Center, Program in Economics, City University of New York, Brooklyn, NY, United States, The World Bank, Washington, DC, United States; Reddy K., Department of Economics, Christ (Deemed to be University), BGR Campus, Bangalore, India; De Beule F., Department of Management, Strategy and Innovation, Faculty of Economics and Business, KU Leuven, Belgium

Rights

All Open Access; Hybrid Gold Open Access

Relation

ISSN: 157325

Format

Online

Language

English

Type

Article

Identifier

https://doi.org/10.1177/00157325211031317

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