Impacts of digitalization on foreign investments in the European region during the COVID-19 pandemic

Q2 Social Sciences

Development Studies Research Pub Date : 2022-06-13 DOI:10.1080/21665095.2022.2074863

Leavitt Ha, N. Huyen

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引用次数: 3

Abstract

ABSTRACT The inflow of foreign direct investment (FDI) worldwide, especially in European countries, suffered a steep fall due to the rapid spread of the COVID-19 virus. This article is the first effort to empirically investigate the nexus between digital transformation and FDI inflows, thereby finding a way to help countries overcome the current situation. Using the data of 23 European countries pre-COVID (2015–2019) and during the COVID health crisis (2020), we demonstrate a nonlinear relationship between digitalization and FDI inflows, implying that a certain extent of digital transformation could promote the inflows of FDI. Before the COVID-19 health crisis, digital business played a critical role in attracting FDI inflows. E-commercial activities also enhanced FDI flows during the spread of the COVID-19 pandemic, and digital public services may be an effective tool to help countries overcome the health crisis. Furthermore, digitalization plays a critical role in promoting FDI inflows in both the short term and long term. Hence, digital transformation is an inevitable process that countries need to embrace in order to overcome the challenges of the COVID-19 pandemic and resolve the delay or lack of foreign investments.

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2019冠状病毒病大流行期间数字化对欧洲地区外国投资的影响

摘要由于新冠肺炎病毒的迅速传播，全球外国直接投资（FDI）流入量急剧下降，尤其是在欧洲国家。本文首次尝试实证研究数字化转型与外国直接投资流入之间的关系，从而找到帮助各国克服当前形势的方法。利用23个欧洲国家在新冠疫情前（2015-2019）和新冠疫情健康危机期间（2020）的数据，我们展示了数字化与外国直接投资流入之间的非线性关系，这意味着一定程度的数字化转型可以促进外国直接投资的流入。在新冠肺炎健康危机之前，数字业务在吸引外国直接投资流入方面发挥了关键作用。在新冠肺炎疫情蔓延期间，电子商业活动也促进了外国直接投资流动，数字公共服务可能是帮助各国克服健康危机的有效工具。此外，数字化在促进短期和长期外国直接投资流入方面发挥着关键作用。因此，数字化转型是各国需要接受的一个不可避免的过程，以克服新冠肺炎疫情的挑战，解决外国投资的延迟或缺乏问题。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Development Studies Research Social Sciences-Development

CiteScore

3.20

自引率

0.00%

发文量

审稿时长

12 weeks

期刊介绍： Development Studies Research ( DSR) is a Routledge journal dedicated to furthering debates in development studies. The journal provides a valuable platform for academics and practitioners to present their research on development issues to as broad an audience as possible. All DSR papers are published Open Access. This ensures that anyone, anywhere can engage with the valuable work being carried out by the myriad of academics and practitioners engaged in development research. The readership of DSR demonstrates that our goal of reaching as broad an audience as possible is being achieved. Papers are accessed by over 140 countries, some reaching over 9,000 downloads. The importance of the journal to impact is thus critical and the significance of OA to development researchers, exponential. Since its 2014 launch, the journal has examined numerous development issues from across the globe, including indigenous struggles, aid effectiveness, small-scale farming for poverty reduction, sustainable entrepreneurship, agricultural development, climate risk and the ‘resource curse’. Every paper published in DSR is an emblem of scientific rigour, having been reviewed first by members of an esteemed Editorial Board, and then by expert academics in a rigorous review process. Every paper, from the one examining a post-Millennium Development Goals environment by one of its architects (see Vandermortele 2014), to ones using established academic theory to understand development-imposed change (see Heeks and Stanforth 2015), and the more policy-oriented papers that contribute valuable recommendations to policy-makers and practitioners (see DSR Editor’s Choice: Policy), reaches a multidisciplinary audience.