COVID-19 and Stock Markets Response in Developing Countries. The Case of MENA Countries
Posted: 16 Jun 2020 Last revised: 7 Dec 2021
Date Written: June 16, 2020
Motivated by the rapid spread of novel coronavirus COVID-19 outbreak in the world. This study explores the stock markets’ response to the global COVID-19 pandemic in developing countries. We make use of a panel dataset including 685 observations from 13 countries in the Middle East and North Africa area (MENA) for the period January 29, 2020, to June 1, 2020, which was analysed using ordinary least squares regressions (OLS regression). The regression results indicate that stock markets have responded negatively to the growth in COVID-19 deaths. Meanwhile, stock markets show no reaction to the daily growth in confirmed COVID-19 cases.
Keywords: COVID-19, Coronavirus, Stock returns and developing countries
JEL Classification: G10, G14, G15, C23
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