Socioeconomic Impact of COVID-19 on Investment, Trade and Economic Growth: Re-Positioning the World Economic Preferences
1 Pages Posted: 1 Sep 2020
Date Written: September 1, 2020
We show the impact of COVID-19 pandemic on world’s affected countries (Complete or Partial Locked Down countries) mainly transmitted through social and economic factors. In this regard, we assess the effects of covid-19 on Investments, remittances, Trade, Tourism, Oil Prices, Production, Health, Education, Unemployment, and Air Line industry. Applying Exploratory Data Analysis (EDA) before (Jan 2019-Nov 2019) and after COVID-19 (Dec 2019- October 2020), we demonstrate that developed and transition economies witnessed remarkably low economic activities and shows a sudden and big investment outflows from transition economies, in addition to a huge cut in exports, Air Line Revenues, oil prices, over all production and employment after the pandemic. We also show increased political mistrust among world’s major economic players. Through a Panel data estimation on 160 countries weekly statistics, by applying simultaneous equation model we empirically capture the negative impact of COVID-19 on social and economic factors. We measure COVID-19 factor through a proxy index no. of affected persons in respective countries. In the end we come up with some policy recommendations for developed and transition economies.
Keywords: Economic Growth; Remittances; COVID-19; Investment; Oil Prices; Trade; Tourism; World Economy
JEL Classification: E6, F18, J61, I31, I38, O1, O4
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