The Impact of the COVID-19 Pandemic on the Evolution of Investment Markets in Central and Eastern Europe

Aleksy Kwilinski; Rafal Rebilas; Dmytro Lazarenko; Nadiia Stezhko; Henryk Dzwigol

doi:10.23762/FSO_VOL11_NO4_8

Published : 2023-12-31

Vol. 11 No. 4 (2023)

The Impact of the COVID-19 Pandemic on the Evolution of Investment Markets in Central and Eastern Europe

Aleksy Kwilinski

https://orcid.org/0000-0001-6318-4001

Rafal Rebilas

https://orcid.org/0000-0001-7926-1155

Dmytro Lazarenko

https://orcid.org/0000-0002-9957-6311

Nadiia Stezhko

https://orcid.org/0000-0001-7292-5617

Henryk Dzwigol

https://orcid.org/0000-0002-2005-0078

DOI: https://doi.org/10.23762/FSO_VOL11_NO4_8

Abstract

The COVID-19 pandemic profoundly affected the economies of Central and Eastern Europe, particularly investment activities. Said impact varied, with some countries maintaining or boosting their investment attractiveness, while others suffered drastically. Understanding these dynamics is vital due to the key role of investment in economic growth, job creation, and competitiveness. The literature review highlights gaps in understanding the pandemic’s impact on investment in Central and Eastern Europe. These gaps include limited analysis of sector-specific investment market transformations, the inadequate assessment of the pandemic’s influence on investment behaviours, and insufficient research on effective measures to enhance investment activity. This study aims to evaluate the effect of the COVID-19 pandemic on investment attractiveness and enterprise activities in Central and Eastern European countries. Utilising methods such as dialectical scientific cognition, system and statistical analysis, and regression analysis (examining the relationship between FDI and GDP), the research uncovers imbalances in investment activity due to the pandemic. It identifies a direct correlation between GDP and investment volumes and examines sectoral disproportions and national/regional investment peculiarities. The study delves into the pandemic-induced shift in investor orientation and caution, as well as the effects of subsequent COVID-19 waves and macroeconomic policies on investment and economic growth. It addresses how the pandemic exacerbated income inequality and social tensions, influencing investment stability and decisions. In conclusion, the pandemic prompted cautious investment behaviour and a partial investor reorientation. Future research should investigate the detailed impact of the pandemic on the investment attractiveness of specific Central and Eastern European countries, providing a deeper understanding of how the pandemic affected investment market transformations and investor decisions.

Keywords:

Central and Eastern Europe, financial imbalances, COVID-19, investment

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Kwilinski, A., Rebilas, R., Lazarenko, D., Stezhko, N., & Dzwigol, H. (2023). The Impact of the COVID-19 Pandemic on the Evolution of Investment Markets in Central and Eastern Europe. Forum Scientiae Oeconomia, 11(4), 157–186. https://doi.org/10.23762/FSO_VOL11_NO4_8

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