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The Impact of the COVID-19 Pandemic on Net FDI Inflows in Lithuania: A Time Series Analysis

Loikala, Rebecka LU and Businskyte, Eva LU (2024) NEKN01 20241
Department of Economics
Abstract (Swedish)
This paper examines the impact of COVID-19 on total net FDI inflows in Lithuania. More specifically, the aim is to fill in the gap that exists in previous research by focusing on the critical assessment of finding explanations behind the deviation of the net FDI inflow patterns during the pandemic. To study the relationship, the quarterly data is collected and a time series analysis has been implemented between 2013-2023 to account for FDI inflow patterns. The explanatory variables in the regression model include the presence of COVID-19 and quarantine restrictions, a government stimulus package as well as a consumer confidence index. A general model has been constructed for the entire sample, and each explanatory variable has also been... (More)
This paper examines the impact of COVID-19 on total net FDI inflows in Lithuania. More specifically, the aim is to fill in the gap that exists in previous research by focusing on the critical assessment of finding explanations behind the deviation of the net FDI inflow patterns during the pandemic. To study the relationship, the quarterly data is collected and a time series analysis has been implemented between 2013-2023 to account for FDI inflow patterns. The explanatory variables in the regression model include the presence of COVID-19 and quarantine restrictions, a government stimulus package as well as a consumer confidence index. A general model has been constructed for the entire sample, and each explanatory variable has also been run separately to isolate the effect on the dependent variable. The results suggest that the implementation of the fiscal- and financial package by the government had a positive impact on net FDI inflows, while the presence of COVID-19 and quarantine restrictions had a negative impact. The consumer confidence index did not show any significant results in the analysis. Thus, the results underscore the importance of obtaining a stable economic- and policy environment to enhance net FDI inflows in Lithuania during global crises. (Less)
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author
Loikala, Rebecka LU and Businskyte, Eva LU
supervisor
organization
course
NEKN01 20241
year
type
H1 - Master's Degree (One Year)
subject
keywords
Foreign Direct Investment (FDI), Lithuania, COVID-19, Time Series Analysis, Economic Policy, Government Stimulus, Quarantine, Consumer Confidence, Investment Flows, Macroeconomic Indicators
language
English
id
9162150
date added to LUP
2024-10-01 13:06:55
date last changed
2024-10-01 13:06:55
@misc{9162150,
  abstract     = {{This paper examines the impact of COVID-19 on total net FDI inflows in Lithuania. More specifically, the aim is to fill in the gap that exists in previous research by focusing on the critical assessment of finding explanations behind the deviation of the net FDI inflow patterns during the pandemic. To study the relationship, the quarterly data is collected and a time series analysis has been implemented between 2013-2023 to account for FDI inflow patterns. The explanatory variables in the regression model include the presence of COVID-19 and quarantine restrictions, a government stimulus package as well as a consumer confidence index. A general model has been constructed for the entire sample, and each explanatory variable has also been run separately to isolate the effect on the dependent variable. The results suggest that the implementation of the fiscal- and financial package by the government had a positive impact on net FDI inflows, while the presence of COVID-19 and quarantine restrictions had a negative impact. The consumer confidence index did not show any significant results in the analysis. Thus, the results underscore the importance of obtaining a stable economic- and policy environment to enhance net FDI inflows in Lithuania during global crises.}},
  author       = {{Loikala, Rebecka and Businskyte, Eva}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Impact of the COVID-19 Pandemic on Net FDI Inflows in Lithuania: A Time Series Analysis}},
  year         = {{2024}},
}