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A Short Radiography Of Global And European Fdi Flows Under The Impact Of The Covid-19 Pandemic

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  • Dorina CLICHICI

Abstract

The year 2020 ended with the lowest value of global foreign direct investment (FDI) in the last 15 years, after a downward trend in these flows during 2016-2019. This collapse was determined by the Covid-19 pandemic, triggered in China at the end of 2019, which spread rapidly worldwide. Mobility restrictions enforced by world governments, in order to limit the spread of the pandemic, but also closing economic sectors, have disrupted global value chains, the international trade and, consequently, FDI inflows across countries in 2020. The European Union (EU) is not an exception to this trend, with a 2/3 contraction in FDI inflows in 2020. The article presents recent trends in global and European FDI inflows in 2020, but also the perspectives of these flows’ dynamics in the conditions of the pandemic crisis.

Suggested Citation

  • Dorina CLICHICI, 2021. "A Short Radiography Of Global And European Fdi Flows Under The Impact Of The Covid-19 Pandemic," Euroinfo, Institute for World Economy, Romanian Academy, vol. 5(1), pages 96-105, March.
    • Handle: RePEc:iem:eurinf:v:5:y:2021:i:1:p:96-105
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    More about this item

    Keywords

    foreign direct investment; Covid-19 pandemic; European Union; multinational corporations;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • 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
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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