Foreign Direct Investments (FDI) are often considered long-term and less sensitive to global shocks as they involve large amounts of capital investment that are costly to reverse. This study examines whether a pandemic arbitrage through “distance” in COVID-19 infection rates impacts FDI....

Fearing opportunistic takeovers during the economic upheaval caused by the Covid-19 pandemic, India put forth FDI restrictions resulting in the suspension of automatic route FDI from its border-sharing neighbours. Applying difference-in-difference methodology to bilateral greenfield project...