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Article
Publication date: 7 July 2023

Imalka Wasana Rathnayaka, Rasheda Khanam and Mohammad Mafizur Rahman

This study aims to explore the efficacy of government policy directions in mitigating the effects of the COVID-19 pandemic by employing a panel of 22 countries throughout the…

Abstract

Purpose

This study aims to explore the efficacy of government policy directions in mitigating the effects of the COVID-19 pandemic by employing a panel of 22 countries throughout the 2020-second quarter of 2022.

Design/methodology/approach

The panel autoregressive distributed lag (ARDL) model is employed to examine this phenomenon and to investigate the long-run effects of government policy decisions on infection and mortality rates from the pandemic.

Findings

The study reveals the following key findings: (1) Income support and debt relief facilities and stringent standards of governments are associated with reduced infection and death rates. (2) The response of governments has resulted in decreased mortality rates while simultaneously leading to an unexpected increase in infection rates. (3) Containment and healthcare practices have led to a decrease in infection rates but an increase in mortality rates, presenting another counterintuitive outcome. Despite the expectation that robust government responses would decrease infection rates and that healthcare containment practices would reduce mortality, these results highlight a lack of health equity and the challenge of achieving high vaccination rates across countries.

Research limitations/implications

To effectively combat the spread of COVID-19, it is crucial to implement containment health practices in conjunction with tracing and individual-level quarantine. Simply implementing containment health measures without these interconnected strategies would be ineffective. Therefore, policy implications derived from containment health measures should be accompanied by targeted, aggressive, and rapid containment strategies aimed at significantly reducing the number of individuals infected with COVID-19.

Practical implications

This study concludes by suggesting the importance of implementing economic support in terms of income, and debt relief has played a crucial role in mitigating the spread of COVID-19 infections and reducing fatality rates.

Social implications

To effectively combat the spread of COVID-19, it is crucial to implement containment health practices in conjunction with tracing and individual-level quarantine. Simply implementing containment health measures without these interconnected strategies would be ineffective. Therefore, policy implications derived from containment health measures should be accompanied by targeted, aggressive, and rapid containment strategies aimed at significantly reducing the number of individuals infected with COVID-19.

Originality/value

This research makes a unique contribution to the existing literature by investigating the impact of government responses on reducing COVID-19 infections and fatalities, specifically focusing on the period before COVID-19 vaccinations became available.

Details

International Journal of Sociology and Social Policy, vol. 44 no. 1/2
Type: Research Article
ISSN: 0144-333X

Keywords

Book part
Publication date: 3 September 2021

Pedro Manuel Nogueira Reis and Carlos Pinho

Purpose: This work provides an empirical analysis of investor behaviour's simultaneous influence due to the surprise effect caused by COVID-19 cases and government responses to

Abstract

Purpose: This work provides an empirical analysis of investor behaviour's simultaneous influence due to the surprise effect caused by COVID-19 cases and government responses to market risk. This analysis compares tourism assets risk with other sectors and different types of investors' assets and categories in Europe.

Design: The paper applies an ARIMA with a GARCH model to predict conditional volatility of models for market uncertainty. Nonlinear models, factor analysis and time series linear regression for stationary variables in first differences are applied to predict market uncertainty.

Findings: We demonstrate that market risk does not arise from COVID-19 cases but instead from the surprise effect, as the market accurately predicts future cases. Only the volatility of the sectors Travel, Airline, and Utility are influenced by both surprise effect and government response, but only the travel sector reveals an interaction effect with both government response effort and surprise effect.

Originality: The article mutually studies the simultaneous interactions among investor behaviour due to the surprised effect caused by COVID-19 and government responses to the pandemic and the influence on professional investors' volatility in two asset types and between different sectors.

Practical implications: With this model and results, investors and financial service providers may verify whether or not government intervention during pandemic periods is effective in reducing uncertainty and risk levels on sectors, types of investors and different sorts of assets.

Details

Pandemics and Travel
Type: Book
ISBN: 978-1-80071-071-9

Keywords

Article
Publication date: 29 December 2023

Intan Farhana and A.K. Siti-Nabiha

This paper presents a review of literature, aimed at analyzing and understanding the nexus of knowledge on the topic of government budgetary responses to COVID-19 and identifying…

Abstract

Purpose

This paper presents a review of literature, aimed at analyzing and understanding the nexus of knowledge on the topic of government budgetary responses to COVID-19 and identifying gaps for future research directions on crisis budgeting.

Design/methodology/approach

A systematic literature review approach was conducted by considering scientific journal articles written in English and published through 2020–2022. The databases used for the literature search in this paper were Scopus and Web of Science, resulting in 41 articles for final review.

Findings

This review found that in a crisis, budgetary responses were greatly determined by perceived uncertainties. In the case of the COVID-19 crisis, governments seemed to prioritize economic recovery. While many studies have documented budgetary responses to the crisis, most were written in the beginning of the crisis through documentary content analysis, leaving significant research gaps. Thus, this review offers directions for future research concerning governmental response to perceived uncertainty, logic behind governments' budgeting strategies, sustainable development principles within crisis budgeting and the prioritization of economic considerations in a health crisis.

Originality/value

This paper is one of the first to present insights into the state of research regarding the topic of government budgeting during the COVID-19 crisis. In addition, it provides insights from the literature for anticipating future shocks and crises, along with directions for future researchers in developing their research agenda.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0057

Details

International Journal of Social Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 3 January 2024

Thi Thanh Xuan Pham and Thi Thanh Trang Chu

This study undertakes a comprehensive investigation into the far-reaching repercussions of Covid-19 stimulus packages and containment policies on stock returns, meticulously…

Abstract

Purpose

This study undertakes a comprehensive investigation into the far-reaching repercussions of Covid-19 stimulus packages and containment policies on stock returns, meticulously examining a diverse array of 14 distinct markets.

Design/methodology/approach

This study employed the Panel SVAR model to analyze the relationships between various policies and stock market performance during the Covid-19 outbreak. The sample comprises 5432 daily observations spanning from December 2020 to January 2022 for the 14 selected markets, with missing data excluded.

Findings

The findings reveal three consistent impacts across all 14 markets. Firstly, stock returns immediately reversed and decreased within a day when Governments tightened containment policies. Secondly, economic stimulus packages led to a fall in stock returns. Thirdly, an increasing death rate caused the stock return to decrease in the following two days. These findings are supported by the uniform impulse responses in all three shocks, including common, composite and idiosyncratic shocks. Furthermore, all inverse root tests satisfy the stability conditions, indicating the stability and reliability of Panel SVAR estimations.

Practical implications

One vital implication is that all government decisions and measures taken against the shock of Covid-19 must consider economic impacts to avoid unnecessary financial losses and support the effective functioning of stock markets during similar shocks. Secondly, investors should view the decline in stock returns due to Covid-19 effects as temporary, resulting from anxiety about the outbreak. The study highlights the importance of monitoring the impact of policies on financial markets and the broader economy during crises. Overall, these insights can prove helpful for investment decisions and policymaking during future crises.

Originality/value

This study constitutes a noteworthy addition to the literature on behavioural finance and the efficient market hypothesis, offering a meticulous analysis of the multifaceted repercussions of Covid-19 on market interactions. In particular, it unveils the magnitude, duration and intricate patterns of market volatilities linked to significant shock events, encompassing a comprehensive dataset spanning 14 distinct markets.

Details

The Journal of Risk Finance, vol. 25 no. 1
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 1 September 2023

Jacob Agyemang, John Azure, Danson Kimani and Thankom Arun

The paper examines financial resilience responses/capacities of governments from Liberia, Sierra Leone and Ghana in relation to COVID-19. It highlights the governments’ fiscal…

Abstract

Purpose

The paper examines financial resilience responses/capacities of governments from Liberia, Sierra Leone and Ghana in relation to COVID-19. It highlights the governments’ fiscal, budgetary and actions as either anticipatory or coping mechanisms towards the pandemic.

Design/methodology/approach

Multiple case studies and secondary data were used, including official government documentation/records, expert views, policy publications by supranational organisations and international financial institutions and media reports. Textual analysis was conducted to evaluate the case countries’ resilience.

Findings

The paper highlights how governmental budgetary initiatives, including repurposing the manufacturing sector, can sustain businesses, aid social interventions and reduce vulnerability during health crises. In addition, the paper highlights that external borrowing continues to be indispensable in the financial and budgetary initiatives of the case countries. The paper finds that lessons learnt from the Ebola Virus Disease (EVD) in West Africa within the last decade have shaped the anticipatory resilience capacities of the case countries against COVID-19.

Originality/value

The paper uses the notion of resilience, the dimensions of the resilience framework and the resource-based view (RBV) theory to unearth resilience patterns. This sort of combined approach is new to financial resilience studies.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 35 no. 3
Type: Research Article
ISSN: 1096-3367

Keywords

Article
Publication date: 16 May 2023

Rizky Yudaruddin

This study aims to examine the joint impact of the COVID-19 pandemic and the government response on the performance of Islamic and conventional banks.

Abstract

Purpose

This study aims to examine the joint impact of the COVID-19 pandemic and the government response on the performance of Islamic and conventional banks.

Design/methodology/approach

Data were collected from a sample of 94 conventional and 14 Islamic banks in Indonesia from March 2020 to September 2021. The system generalized methods of moments estimation is used to analyze the data.

Findings

This study finds robust results regarding the negative impact of the COVID-19 pandemic and the positive effects of government responses to COVID-19 pandemic on bank performance in Indonesian banking. Moreover, in line with the rise in confirmed COVID-19 cases, a higher government policy responses index improves bank performance, both in conventional and Islamic banks.

Practical implications

This paper highlights the importance of the government policy responses index to absorb the negative impact of the COVID-19 outbreak on banking performance.

Originality/value

This paper provides novel insights into the joint impact of the COVID-19 pandemic and government responses to COVID-19 pandemic on bank performance between conventional and Islamic banks.

Details

Journal of Islamic Accounting and Business Research, vol. 14 no. 6
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 21 January 2022

Abdulazeez Y.H. Saif-Alyousfi

This paper aims to investigate the impact of COVID-19 and the stringency of the government policy response on stock market returns globally and at the regional level.

Abstract

Purpose

This paper aims to investigate the impact of COVID-19 and the stringency of the government policy response on stock market returns globally and at the regional level.

Design/methodology/approach

Pooled-ordinary least squares (OLS) and panel data techniques are used to analyse the daily data set across 88 countries in the Americas, Europe, Asia-Pacific, Middle East and Africa for the period of 1 January 2020 to 10 May 2021.

Findings

Using pooled-OLS and panel data techniques, the analyses show that both the daily growth in confirmed cases and deaths caused by COVID-19 have significant negative effects on stock returns across all markets. The effects are non-linear and U-shaped. Stock markets react more to the growth of confirmed cases than to the growth in the number of confirmed deaths. The results, however, vary across regions. More specifically, this study finds that the negative effect of confirmed cases is stronger in the Americas and the Middle East, followed by Europe. The negative direct effect of deaths caused by COVID-19 is stronger in the European region, followed by the Middle East, in relation to the rest of the world. The stock market returns in the African region are not, however, statistically significant. The researcher finds evidence that stringent policy responses lead to a significant increase in the stock market returns, both globally and across regions.

Practical implications

The results suggest that the integrity of the government and its interventions complemented by a stable and reliable monetary policy are crucial in providing confidence to firms and households in uncertain times.

Originality/value

COVID-19 has a significant impact on national economies and stock markets, triggering various governments’ interventions across all geographic regions. The pandemic has significantly affected all aspects of life, especially the stock markets. However, their empirical impact on stock returns is still unclear. This paper is the first of its kind to fill this gap by providing an in-depth quantitative analysis of the impact of both COVID-19 and stringency of the governmental policy responses on stock market returns globally and at the regional level. It is also the first to use an advanced analytical framework in analysing the effects of daily growth in both total and newly confirmed cases, and the daily growth in both total and new deaths caused by COVID-19 on them. The dynamic nature of the data on COVID-19 is taken into account. The non-linearity of the effects is also considered.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 15 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 15 November 2022

Souhaila Kammoun and Youssra Ben Romdhane

The purpose of this paper is twofold. Firstly, the paper aims to determine the separate effects of the COVID-19 pandemic and government actions represented by the index of…

Abstract

Purpose

The purpose of this paper is twofold. Firstly, the paper aims to determine the separate effects of the COVID-19 pandemic and government actions represented by the index of stringency, containment and economic support on the attractiveness of foreign direct investment (FDI). Secondly, the paper aims to explore the impact of the interactions between the COVID-19 epidemic and government interventions on FDI.

Design/methodology/approach

The study uses a panel data set of 30 Asian countries during the two pandemic years 2020 and 2021 to investigate the effect of government actions on the resilience of FDI attractiveness factors.

Findings

The empirical results reveal the negative effect of COVID-19 on FDI inflows and attractiveness factors. However, government responses have a positive and statistically significant effect on the FDI attractiveness factors such as economic growth, trade openness and human and technological capital development and contribute to the economic recovery of the Asian region.

Practical implications

The empirical findings can provide useful information for policymakers in designing macroeconomic policies and taking government measures to improve their investment environment and attract FDI.

Originality/value

The study shows that government responses, economic support, containment and health policies are effective in containing viruses, reducing the impact of the COVID-19 pandemic and strengthening resilience in FDI attractiveness factors. It also indicates that foreign investors are responding positively to government measures.

Details

Journal of Economic and Administrative Sciences, vol. 40 no. 1
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 31 August 2020

Charl de Villiers, Dannielle Cerbone and Wayne Van Zijl

This paper provides a critical analysis of the South African government's response to the COVID-19 crisis and its effect on state finances and budgets.

18468

Abstract

Purpose

This paper provides a critical analysis of the South African government's response to the COVID-19 crisis and its effect on state finances and budgets.

Design/methodology/approach

The paper critically analyses publicly available data.

Findings

The South African government's initial health response was praised by the international community, given the early lockdown and extensive testing regime. The lockdown devastated an already precarious economy, which led to negative social consequences. The initial lockdown delayed the epidemic, but subsequently, the infection rate climbed, requiring new restrictions, suggesting further economic disruption. The government has had to increase its borrowings, while the future tax take is forecast to be significantly reduced, a combination which will lead to a severely constrained public purse for many years to come. This will limit the government's ability to address the basic social needs that predated the COVID-19 crisis.

Originality/value

This is one of the first academic papers to critically assess the effect of the South African government's response to the COVID-19 crisis on state finances and budgets.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 32 no. 5
Type: Research Article
ISSN: 1096-3367

Keywords

Book part
Publication date: 20 July 2023

Rabiah Aminudin, Lee Pei May, Norhaslinda Jamaiudin, Rohana Abdul Hamid and Syaza Shukri

COVID-19 is a global pandemic that was unprecedented in human history. The scale of infection was unusual with most countries succumbing to this disease. Various mitigation plans…

Abstract

COVID-19 is a global pandemic that was unprecedented in human history. The scale of infection was unusual with most countries succumbing to this disease. Various mitigation plans were introduced by governments around the world to contain the spread of the virus. The Southeast Asian region is not spared from the harmful effects of COVID-19. Most Southeast Asian countries responded swiftly to COVID-19 by introducing stringent policies such as contact tracing, mandatory quarantine, restriction of movements, cancellation of public events, health screenings, and border closures early on to tackle the rapid spread of the virus. The adoption of technology for contact tracing such as MySejahtera (Malaysia), TraceTogether (Singapore), PeduliLindungi (Indonesia), Mor Chana (Thailand), and Stay Safe (Philippines) shows the rapid response from the governments to contain the spread of COVID-19. The variation in the degree of success stories at different timelines in managing COVID-19 in the region indicates that COVID-19 management requires short and long-term planning, especially in the public health policy. In the case of Malaysia, the first phase of movement control order (MCO, 18–31 March 2020) took place on the background of political turmoil. The newly formed government under the leadership of Muhyiddin Yasin announced the first phase of lockdown in Malaysia to control the rising number of COVID-19 cases. The lockdowns then evolved into different forms at different phases of implementation until it was announced on 8 March 2022 that the country is transitioning to the endemic phase on 1 April 2022. This study shows that the respondents to our survey during the first phase of MCO are highly aware of the government’s initiatives to manage COVID-19 and the Malaysian public has a high level of trust and confidence in the government’s initiatives. The stringent measures taken by the government in the first wave of COVID-19 were seen as a necessity and it provided legitimacy to the government despite being the first unelected government in Malaysian history.

Details

Pandemic, Politics, and a Fairer Society in Southeast Asia: A Malaysian Perspective
Type: Book
ISBN: 978-1-80455-589-7

Keywords

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