The role of foreign direct investment flows in the growth and development of any nation cannot be overemphasized. However, different economic issues influence the pattern and flow of several investment channels. Notable among such economic crises is the recent COVID-19 pandemic that ravaged the entire global economy and restricted the flow of foreign investment among countries. With the perceived influence of the pandemic on businesses and investments, this study investigates the impact of COVID-19-related shock on the FDI flows of OECD countries. Using the Augmented Mean Group (AMG) long-run estimator, it reveals that the COVID-19 shock harms FDI inflows across OECD but enhances the outflows of FDI from OECD. Furthermore, the comparative analysis of the Eurozone and non-Eurozone countries in OECD shows that the effect of COVID-19 shock on FDI flows is positive in the former but otherwise in the latter. Hence, the monetary authorities of these countries must implement favorable monetary policies that will enhance new and ongoing investments as well as the expansion of industrial activities. Also, policymakers in this region should encourage the formulation of economic frameworks that are resilient to several global and country-specific economic uncertainties to safeguard the economies from unforeseen circumstances.
The significance of trade in the development of nations made this study examine the impact of trade balance, exchange rate, and money supply on economic growth with reference to Nigeria's economy and to serve a lesson for other African countries. The study relies on the Mundell-Fleming BOP model for its framework with the use of secondary time-series data extracted from the statistical bulletin of the Central Bank of Nigeria from 1981 to 2020. The ARDL cointegration of the least square was adopted and the result showed a long-term relationship among trade balance, exchange rate, broad money supply, interest rate, inflation rate, and economic growth in Nigeria. Our study thus concludes that the oil trade balance is the fundamental driver of Nigeria's economic growth and appropriately, we suggested that to ensure economic growth in Nigeria and other African countries; the government should strategize on policies to develop trade in the non-oil sector; also the monetary authorities should design frameworks towards making money supply growth enhancer, and stabilization of the exchange rate for domestic countries to gain more from trade by intensifying the flux of credit to the real and exporting sector towards setting the economies on the track of expansion.
This study investigates the interdependence between oil shocks and green investments over time and frequency domains. Using the wavelet coherence approach, our results show evidence of bidirectional causality between all the variants of oil shocks and green investments around the global financial crisis and the 2014-2016 oil crisis. Economic activity shocks significantly Granger-cause green investments during the COVID-19 pandemic.
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