The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It?
This paper argues that income inequality explains the variation in the economic performance of different countries over the first year of the COVID-19 pandemic. Unlike the conclusions reported by some studies, this study shows that health casualties caused by COVID-19 has had a <i>higher adver...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-07-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/10/7/158 |
| _version_ | 1827597378912256000 |
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| author | Mahieddine Adnan Ghecham |
| author_facet | Mahieddine Adnan Ghecham |
| author_sort | Mahieddine Adnan Ghecham |
| collection | DOAJ |
| description | This paper argues that income inequality explains the variation in the economic performance of different countries over the first year of the COVID-19 pandemic. Unlike the conclusions reported by some studies, this study shows that health casualties caused by COVID-19 has had a <i>higher adverse economic impact</i> on countries with lower income inequality. Notwithstanding, the decline in the economic growth as well as the number of casualties caused by COVID-19 are, overall, proportionate to the level of income inequality of the country. Furthermore, the results show that countries with more dependence on the service sector and countries that implemented more restrictive measures (lockdowns) experienced a higher decline in GDP growth over the first year of the pandemic period. The paper concludes with some important policy implications that support the role of strong institutions in making economies resilient over a period of pandemic. |
| first_indexed | 2024-03-09T03:30:31Z |
| format | Article |
| id | doaj.art-65acc092dde34a1c99e7551209a7c8be |
| institution | Directory Open Access Journal |
| issn | 2227-7099 |
| language | English |
| last_indexed | 2024-03-09T03:30:31Z |
| publishDate | 2022-07-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj.art-65acc092dde34a1c99e7551209a7c8be2023-12-03T14:56:02ZengMDPI AGEconomies2227-70992022-07-0110715810.3390/economies10070158The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It?Mahieddine Adnan Ghecham0Abu Dhabi Campus, Business College, Al Ain University, Al Ain P.O. Box 64141, United Arab EmiratesThis paper argues that income inequality explains the variation in the economic performance of different countries over the first year of the COVID-19 pandemic. Unlike the conclusions reported by some studies, this study shows that health casualties caused by COVID-19 has had a <i>higher adverse economic impact</i> on countries with lower income inequality. Notwithstanding, the decline in the economic growth as well as the number of casualties caused by COVID-19 are, overall, proportionate to the level of income inequality of the country. Furthermore, the results show that countries with more dependence on the service sector and countries that implemented more restrictive measures (lockdowns) experienced a higher decline in GDP growth over the first year of the pandemic period. The paper concludes with some important policy implications that support the role of strong institutions in making economies resilient over a period of pandemic.https://www.mdpi.com/2227-7099/10/7/158COVID-19income inequalityinstitutionscategorical regressionstringency measures |
| spellingShingle | Mahieddine Adnan Ghecham The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It? Economies COVID-19 income inequality institutions categorical regression stringency measures |
| title | The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It? |
| title_full | The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It? |
| title_fullStr | The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It? |
| title_full_unstemmed | The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It? |
| title_short | The Impact of COVID-19 on Economic Growth of Countries: What Role Has Income Inequality in It? |
| title_sort | impact of covid 19 on economic growth of countries what role has income inequality in it |
| topic | COVID-19 income inequality institutions categorical regression stringency measures |
| url | https://www.mdpi.com/2227-7099/10/7/158 |
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