Covid-19 Cases Growth and Business Continuity in Indonesia: A Causality Test

1 Pages Posted: 9 Jun 2021

Date Written: March 9, 2021

Abstract

The objective of this study is to examine the causality between Covid-19 cases growth and business continuity in Indonesia, thus can be formulated the post-Covid business strategies. The Covid-19 cases are modeled into ‘daily case’ and ‘active case’, while business continuity proxied with human mobility to grocery and pharmacy, also to retail and recreation. Using daily data ranging from March to December 2020, the Granger causality results show that there is a bidirectional causality between daily case and grocery-pharmacy business, whereas interestingly there is a unidirectional relationship from retail-recreation business to daily case. In active case model, author found a unidirectional causality from active case to both grocery-pharmacy and retail-recreation business. This research may be used to improve business strategy in order to maintain the business life during the Covid-19 Pandemic in Indonesia.

Keywords: business, Covid-19, Granger casualty, Human mobility

Suggested Citation

Prestianawati, Silvi Asna and Setyanti, Axellina Muara, Covid-19 Cases Growth and Business Continuity in Indonesia: A Causality Test (March 9, 2021). Proceedings of the 4th International Conference on Communication & Business (ICCB 2021), Available at SSRN: https://ssrn.com/abstract=3859193 or http://dx.doi.org/10.2139/ssrn.3859193

Silvi Asna Prestianawati (Contact Author)

Brawijaya University ( email )

Jl. Mayjend Haryono, 167
Malang, 65145
Indonesia

Axellina Muara Setyanti

Brawijaya University ( email )

Jl. Mayjend Haryono, 167
Malang, 65145
Indonesia

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