• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Quaterly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Managing Editor: Ms. Shira. W. Lu
    • Abstracting/ Indexing:  Crossref, Electronic Journals Library , EBSCO
    • E-mail: ijtef.editorial.office@gmail.com
IJTEF 2022 Vol.13(3): 121-128 ISSN: 2010-023X
DOI: 10.18178/ijtef.2022.13.3.734

An Impact of International Capital Flows on European Union Countries’ Savings, Investments, Consumption, and Current Accounts in the Frame of Pandemic

Laura Vilutiene and Daiva Dumciuviene

Abstract—An increasing number of cases and deaths of the new COVID-19 virus has raised the debates can it be the new periodical pandemic in the world. The main aim of this paper is to present the theoretical aspects of the effect of pandemics on a countries’ economies and to analyse the affected international capital flows potential impact on European Union (EU) countries’ economies: how it can influence the changes in countries’ domestic savings, investments, consumption, and current accounts. During the investigation, the newest studies on the effect of pandemics to countries’ economies were reviewed and systemized, 27 EU countries’ main indicators were collected, and computed coefficients, which represent the change associated with a variation in countries’ foreign capital flows, equal to forecast GDP decrease, were analysed. Analyses conducted shows that this pandemic has the impact on EU countries’ economies. Main findings are that gross capital flows and foreign direct investments, affected by COVID-19 pandemic, has a negative impact on countries’ domestic savings, investments, consumption, and current account, especially in developing countries. While affected short-term flows – portfolio flows have a positive impact on developing countries’ consumption. More detailed results are provided at the end of this paper.

Index Terms—International capital flows, impact, pandemics, COVID-19, European Union, countries’ economies.

The authors are with the Kaunas University of Technology, LT-53343 Lithuania (e-mail: laura.vilutiene@ktu.lt, daiva.dumciuviene@ktu.lt).

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Cite: Laura Vilutiene and Daiva Dumciuviene, "An Impact of International Capital Flows on European Union Countries’ Savings, Investments, Consumption, and Current Accounts in the Frame of Pandemic," International Journal of Trade, Economics and Finance vol.13, no.3, pp. 121-128, 2022.

Copyright © 2022 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 

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