Impacts of Foreign Direct Investment on the Economic Growth of Some European Countries in the Context of the Covid-19

In: Journal of social sciences: interdisciplinary reflection of contemporary society, Volume 72, Issue 1-3

Abstract

This study reviewed the impacts of foreign direct investment (FDI) on the economic growth of 7 European countries with panel data models in the context of the strong impact of the Covid-19 pandemic on macroeconomic growth and stability. Data was collected from the first months of 2021 from the IMF and ILO of 8 countries including Germany, Sweden, Netherlands, Finland, Italy, Switzerland, France, and Spain. The results showed that FDI has made an important contribution to the GDP growth of these countries, becoming an important solution in ensuring growth, stabilizing the macro-economy, and helping these countries increase their economy's resilience against the pandemic.