Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks
This paper examines the dynamic effects of coronavirus pandemic on the global economy by pitching its searchlights on the demand and supply shocks. The study employed Vector Autoregression (VAR) technique and Granger causality test; the Granger causality test revealed that COVID-19 pandemic does not...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Ovidius University Press
2020-01-01
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| Series: | Ovidius University Annals: Economic Sciences Series |
| Subjects: | |
| Online Access: | http://stec.univ-ovidius.ro/html/anale/RO/2020/Section%201/7.pdf |
| _version_ | 1818950106386268160 |
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| author | Chinenye Ifeoma Nwokolo Matthew Ikechukwu Ogbuagu Onyebuchi Iwegbu |
| author_facet | Chinenye Ifeoma Nwokolo Matthew Ikechukwu Ogbuagu Onyebuchi Iwegbu |
| author_sort | Chinenye Ifeoma Nwokolo |
| collection | DOAJ |
| description | This paper examines the dynamic effects of coronavirus pandemic on the global economy by pitching its searchlights on the demand and supply shocks. The study employed Vector Autoregression (VAR) technique and Granger causality test; the Granger causality test revealed that COVID-19 pandemic does not trigger change in regional stock markets and commodity prices within these regions; except for the price of natural gas which changed as a result of the COVID19 pandemic in Europe. Besides the EURONEXT market in Eastern Mediterranean region, the impulse response shows that other regional stock markets responded positively to shocks in daily report of COVID-19 confirmed cases. The study concludes that within the study period, the HSBC’s stock index was the worst-hit. Economies must embrace aggressive efforts at developing COVID19 vaccine as well as coordinated policy measures at increasing the stock market pause above 15 minutes whenever stock prices fall below the lower bound threshold. |
| first_indexed | 2024-12-20T09:13:19Z |
| format | Article |
| id | doaj.art-32d57a7d34dc48768e8484d91e8a2c97 |
| institution | Directory Open Access Journal |
| issn | 2393-3127 2393-3127 |
| language | English |
| last_indexed | 2024-12-20T09:13:19Z |
| publishDate | 2020-01-01 |
| publisher | Ovidius University Press |
| record_format | Article |
| series | Ovidius University Annals: Economic Sciences Series |
| spelling | doaj.art-32d57a7d34dc48768e8484d91e8a2c972022-12-21T19:45:29ZengOvidius University PressOvidius University Annals: Economic Sciences Series2393-31272393-31272020-01-01XX15060Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply ShocksChinenye Ifeoma Nwokolo0Matthew Ikechukwu Ogbuagu1Onyebuchi Iwegbu2University of LagosFederal University Oye-EkitiUniversity of LagosThis paper examines the dynamic effects of coronavirus pandemic on the global economy by pitching its searchlights on the demand and supply shocks. The study employed Vector Autoregression (VAR) technique and Granger causality test; the Granger causality test revealed that COVID-19 pandemic does not trigger change in regional stock markets and commodity prices within these regions; except for the price of natural gas which changed as a result of the COVID19 pandemic in Europe. Besides the EURONEXT market in Eastern Mediterranean region, the impulse response shows that other regional stock markets responded positively to shocks in daily report of COVID-19 confirmed cases. The study concludes that within the study period, the HSBC’s stock index was the worst-hit. Economies must embrace aggressive efforts at developing COVID19 vaccine as well as coordinated policy measures at increasing the stock market pause above 15 minutes whenever stock prices fall below the lower bound threshold.http://stec.univ-ovidius.ro/html/anale/RO/2020/Section%201/7.pdfcoronavirus pandemicglobal economicdemand and supply shock |
| spellingShingle | Chinenye Ifeoma Nwokolo Matthew Ikechukwu Ogbuagu Onyebuchi Iwegbu Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks Ovidius University Annals: Economic Sciences Series coronavirus pandemic global economic demand and supply shock |
| title | Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks |
| title_full | Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks |
| title_fullStr | Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks |
| title_full_unstemmed | Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks |
| title_short | Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks |
| title_sort | impact of coronavirus pandemic on the global economy demand and supply shocks |
| topic | coronavirus pandemic global economic demand and supply shock |
| url | http://stec.univ-ovidius.ro/html/anale/RO/2020/Section%201/7.pdf |
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