Policy-oriented restart of supply and demand after COVID-19: firm-level evidence for China
International Journal of Emerging Markets
ISSN: 1746-8809
Article publication date: 1 February 2022
Issue publication date: 5 December 2023
Abstract
Purpose
China is the only major economy in the world that has achieved positive gross domestic product (GDP) growth in 2020. The paper aims to explore the effect of China's public policy restarting supply and consumption after coronavirus disease-2019 (COVID-19).
Design/methodology/approach
Affected by the epidemic, global economic growth slowed down. Using the stock price data of Chinese A-share listed company, combining natural experiment and event study method, the paper examines the policy effects of work resumption and consumer vouchers.
Findings
Compared with demand capacity, the work resumption has a more significant role in promoting the supply industry. Issuing consumer vouchers can effectively promote local demand recovery, and the effect is mainly concentrated in the industries involved in consumption vouchers. At the same time, public management capacity and the income level of residents play an important role in restarting supply and demand.
Practical implications
Understanding China's public policies and effects are of positive significance to the restoration of economic development in other countries.
Originality/value
The study contributes to knowledge by empirically examining the effect of China's public policies against the COVID-19 pandemic. The paper also expands the scope of policy-oriented research based on the perspective of supply and demand capacity building.
Keywords
Acknowledgements
This work was supported by the National Social Science Fund of China (No: 18BJY232).
Conflict of interest: The authors declare that they have no conflict of interest.
Citation
Liang, C., Liu, B. and Chan, H.K. (2023), "Policy-oriented restart of supply and demand after COVID-19: firm-level evidence for China", International Journal of Emerging Markets, Vol. 18 No. 11, pp. 4772-4786. https://doi.org/10.1108/IJOEM-08-2021-1284
Publisher
:Emerald Publishing Limited
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