The effects of monetary policies on foreign direct investment inflows in emerging economies: some policy implications for post-COVID-19

Abstract Expansionary monetary policies, which started to be implemented after the global crisis in 2008 and became widespread during COVID-19 period, lowered interest rates increased stock market indexes. This study aims investigate effects of expansionary policies before on foreign direct investment (FDI) flows emerging economies. In this context, effect FDI has been tried determined through changes created financial indicators such as rate index. Accordingly, developments index for Brazil, China, Turkey, Poland were estimated using autoregressive distributed lag (ARDL) model period 2008–2021. Empirical findings show that policy practices causing high low-interest encourage inflows developing countries. The empirical results applied allow important implications made when considered together with contractionary COVID-19. So much so our favour countries regarding imply transition post-COVID-19 may cause significant constraints Therefore, it expected favourable conditions capital will disappear period. other words, falling increasing along able have potential a change preferences international companies towards general prescription obtained from shows would need more FDI-attracting order compensate negative