In 2015, the world experienced the worst refugee crisis since World War II, with almost 50 million people being forcibly displaced. At the end of 2015, more than 162,000 people had applied for asylum in Sweden, a 500% increase compared with 2010. Due to the war in Syria, the group of Syrian refugees accounted for the highest
Purpose: the purpose of study is estimate the Risk premium, Interest rate, Inflation and FDI in the through of Coronavirus in the MENA countries.
Theoretical framework: The theoretical framework included the study of the main variables, which are risk premium, interest rate, inflation, and foreign direct investment during the Corona virus pandemic.
Design/methodology/approach: Concentrating on “COVID-19”, as an effective factor on the Foreign direct investment (FDI), I employ data of “MENA (Middle East and Northern Africa)” countries from 2000 to 2021 to investigate the impact of COVID-19, financial and macroeconomic indicators on FDI relying on the analytic research approach of Static panel data regression, including Pooled OLS, Fixed effect (FE), and Random effect (RE) using STATA software as the statistical evaluation tool.
Findings: The outcome, as expected, reveals the significant negative impact of “inflation”, real interest rate” and “COVID-19”, and positive impact of “exchange rate”, and “GDP per capita” on “FDI” in MENA economies.
Research, Practical & Social implications: This suggests that supporting and handling pandemic situations and improving financial measures by government may lead to higher rate of foreign investment particularly FDI.
Originality/value: The findings of this analysis will be valuable for the “policymakers” to prepare suitable strategies in promoting foreign investment in economies.
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