COVID-19 pandemic is a great challenge that the world has been faced in recent decades. The pandemic has affected the global trade and has caused a dramatic fall in Foreign Direct Investments (FDI). The impact on FDI is concentrated in the countries that are severely hit by the pandemic,...

This study analyzes the dynamic effect of FDI on local firms’ productivity by relaxing the standard implicit assumption that technological spillovers are immediate and permanent. We find that the entry of majority foreign owned firms has a short run negative effect on the productivity of local...