Modelling the Risk of Foreign Divestment in the Visegrad Group Countries During the COVID-19 Pandemic

Salamaga, M.

The COVID-19 pandemic is an unprecedented global phenomenon posing a risk to the health and life of people around the world. It has forced governments of numerous countries to trigger various activities in order to stop the spread of the virus. Certain sectors of the economy in various countries had to freeze operations. Some industries limited their production or service provision, while domestic and international supply chains were interrupted, which increased economic risk. Such conditions are not favourable to foreign investors and make the odds of foreign divestment real. A lot suggests the pandemic will not subside quickly, and it will probably recur. Therefore, a question arises regarding the influence of the coronacrisis on global foreign investment in the near future. The author of this article is interested in the investment market of the Visegrad Group countries. The article is aimed at analysing the risk of foreign divestment in individual countries of the Visegrad Group using logit models, considering the effects of interactions among independent variables. This will allow for identifying material factors affecting the risk of reduced inflow of FDIs and for comparing the risk of foreign divestment between different countries and different economy sectors. © 2021, The Author(s), under exclusive license to Springer Nature Switzerland AG.