Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.

The study focuses on the effects of the COVID-19 pandemic on the economy and foreign direct investments in the European Union countries. Using data envelopment analysis constant and variable returns to scale models, and the Malmquist productivity index, we measured the efficiency of economic resourc...

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Main Authors: Milan Džogan, Roman Lacko, Zuzana Hajduová
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0313161
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author Milan Džogan
Roman Lacko
Zuzana Hajduová
author_facet Milan Džogan
Roman Lacko
Zuzana Hajduová
author_sort Milan Džogan
collection DOAJ
description The study focuses on the effects of the COVID-19 pandemic on the economy and foreign direct investments in the European Union countries. Using data envelopment analysis constant and variable returns to scale models, and the Malmquist productivity index, we measured the efficiency of economic resource utilization concerning foreign direct investments and gross domestic product. These efficiencies were assessed in 2019, before the full outbreak of COVID-19, and in 2020, when uncertainty and the consequences of the pandemic were most pronounced. Despite the challenges posed by the pandemic, the European Union displayed economic resilience in the first year, with no significant reduction in foreign direct investment efficiency. Lower-income European Union countries saw an increase in foreign direct investment efficiency, attributing this to positive changes in managerial efficiency. This suggests that decisions made by authorities positively impacted foreign direct investment flows in economically less developed European Union regions despite restrictive measures and market uncertainties.
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spelling doaj-art-44d2252234a74753bab750a78d6547ae2025-01-17T05:31:37ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01201e031316110.1371/journal.pone.0313161Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.Milan DžoganRoman LackoZuzana HajduováThe study focuses on the effects of the COVID-19 pandemic on the economy and foreign direct investments in the European Union countries. Using data envelopment analysis constant and variable returns to scale models, and the Malmquist productivity index, we measured the efficiency of economic resource utilization concerning foreign direct investments and gross domestic product. These efficiencies were assessed in 2019, before the full outbreak of COVID-19, and in 2020, when uncertainty and the consequences of the pandemic were most pronounced. Despite the challenges posed by the pandemic, the European Union displayed economic resilience in the first year, with no significant reduction in foreign direct investment efficiency. Lower-income European Union countries saw an increase in foreign direct investment efficiency, attributing this to positive changes in managerial efficiency. This suggests that decisions made by authorities positively impacted foreign direct investment flows in economically less developed European Union regions despite restrictive measures and market uncertainties.https://doi.org/10.1371/journal.pone.0313161
spellingShingle Milan Džogan
Roman Lacko
Zuzana Hajduová
Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.
PLoS ONE
title Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.
title_full Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.
title_fullStr Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.
title_full_unstemmed Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.
title_short Empirical research of foreign direct investments efficiency in the European Union on the edge of pandemic outbreak.
title_sort empirical research of foreign direct investments efficiency in the european union on the edge of pandemic outbreak
url https://doi.org/10.1371/journal.pone.0313161
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AT zuzanahajduova empiricalresearchofforeigndirectinvestmentsefficiencyintheeuropeanunionontheedgeofpandemicoutbreak