Vaccine Initiation Rate and Volatility in the International Stock Market during COVID-19

13 Pages Posted: 20 Oct 2021 Last revised: 23 Oct 2021

See all articles by Bao Cong Nguyen To

Bao Cong Nguyen To

University of Economics Ho Chi Minh City, Vietnam

Bao Khac Quoc Nguyen

University of Economics Ho Chi Minh City, Vietnam

Tam Van Thien Nguyen

University of Economics Ho Chi Minh City, Vietnam

Phuong Thi Minh Nguyen

University of Economics Ho Chi Minh City, Vietnam

Date Written: September 29, 2021

Abstract

We examine the role of the vaccine initiation rate in mitigating the international stock market volatility during COVID-19. Our findings reflect that the positive effect of the vaccine initiation rate assists in stabilizing the international stock markets. This possible effect is stronger for developed markets, and countries with the vaccine initiation rate are above its overall average. The mass vaccinations signal a lower probability of stringent government responses to the pandemic. The low level of trust in governments’ actions makes the investors hold compliance fears and doubt that the negative effects of COVID-19 may be longer, especially for emerging markets.

Keywords: COVID-19, government interventions, stock market volatility, vaccine initiation rate

JEL Classification: G01, G10, G12, G15, G18, H12, H51, I18, Q54

Suggested Citation

Cong Nguyen To, Bao and Khac Quoc Nguyen, Bao and Van Thien Nguyen, Tam and Thi Minh Nguyen, Phuong, Vaccine Initiation Rate and Volatility in the International Stock Market during COVID-19 (September 29, 2021). Available at SSRN: https://ssrn.com/abstract=3945810 or http://dx.doi.org/10.2139/ssrn.3945810

Bao Cong Nguyen To (Contact Author)

University of Economics Ho Chi Minh City, Vietnam ( email )

59C
Nguyen Dinh Chieu
District 3, Hồ Chí Minh 700000
Vietnam

Bao Khac Quoc Nguyen

University of Economics Ho Chi Minh City, Vietnam ( email )

59C
Nguyen Dinh Chieu
District 3, Hồ Chí Minh 700000
Vietnam

Tam Van Thien Nguyen

University of Economics Ho Chi Minh City, Vietnam ( email )

59C
Nguyen Dinh Chieu
District 3, Hồ Chí Minh 700000
Vietnam

Phuong Thi Minh Nguyen

University of Economics Ho Chi Minh City, Vietnam

59C
Nguyen Dinh Chieu
District 3, Hồ Chí Minh 700000
Vietnam

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