Does COVID-19 shock endanger the flows of FDI in OECD? Empirical evidence based on AMG panel estimator

Abstract The role of foreign direct investment flows in the growth and development any nation cannot be overemphasized. However, different economic issues influence pattern flow several channels. Notable among such crises is recent COVID-19 pandemic that ravaged entire global economy restricted countries. With perceived on businesses investments, this study investigates impact COVID-19-related shock FDI OECD Using Augmented Mean Group (AMG) long-run estimator, it reveals harms inflows across but enhances outflows from OECD. Furthermore, comparative analysis Eurozone non-Eurozone countries shows effect positive former otherwise latter. Hence, monetary authorities these must implement favorable policies will enhance new ongoing investments as well expansion industrial activities. Also, policymakers region should encourage formulation frameworks are resilient to country-specific uncertainties safeguard economies unforeseen circumstances.