Policy Article

How Taiwan and South Korea Contained the Spread of Covid-19 and Why this Matters for Attracting FDI

Kiel Policy Briefs, 142 Download

Taiwan and South Korea are generally considered to be more successful than many others in containing the spread of Covid-19. Three basic and interrelated factors have led to their success so far: efficient governance, high quality of medical research and health care, and a smart use of digital technologies. In a generalized form the same capacities – an efficient governance system, high quality research and public services and highly advanced digital skills and infrastructures – are key attributes of an adaptive and resilient business and investment environment capable of dealing with the increasing systemic and idiosyncratic societal and economic challenges in a highly globalized world. The demonstration of Taiwan’s and South Korea’s competence in the Covid-19 crisis should thus help them gain an advantage in attracting more FDI in the future.