FORECASTING FDI FLOWS IN THE COVID-19 PANDEMIC TIMES AND THE ROLE OF INVESTMENT PROMOTION AGENCIES

Authors

ČUHLOVÁ Renata KOTÍKOVÁ Sylvie

Year of publication 2021
Type Article in Periodical
Magazine / Source Economics Management Innovation
MU Faculty or unit

Faculty of Economics and Administration

Citation
Web http://emijournal.cz/wp-content/uploads/2021/05/04_-FORECASTING-FOREIGN-DIRECT-INVESTMENT-FLOWS-IN-THE-COVID-19-PANDEMIC-TIMES-AND-THE-ROLE-OF-INVESTMENT-PROMOTION-AGENCIES.pdf
Keywords Investment incentives, investment promotion agencies, Covid-19, global value chain, foreign direct investment
Description The paper analyses the economic impacts of the pandemic COVID-19 with an emphasis on FDI. The paper evaluates the attitudes of governments towards a crisis and the effects on the stages of economic cycle in the Investment Development Path theory. The important role of investment incentives and the role of investment promotion agencies to support businesses in preventing divestment is highlighted. Based on the analysis of UNCTAD, OECD, CZSO and CNB data, the ambition of the paper is to provide a forecast of FDI inflows in the Czech Republic. Three scenarios are created with a prediction of 15%, 37% and 60% of decline in FDI and compared with the pre-pandemic period. The analysis provides recommendations for both private and public sectors. Business production chains should be simplified and the institutional side should support by appropriate incentive programs. Finally, it is essential to put more emphasis on domestic investors.

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