COVID-19 social distancing measures and economic growth: Distinguishing short- and long-term effects

Badar Nadeem Ashraf and John W. Goodell

Finance Research Letters, 2022, vol. 47, issue PA

Abstract: Social distancing policies have been criticized for their adverse effect on economies. However, we evidence that while they have a short-run adverse effect, they also have a long-run recovery effect on economic growth. Utilizing quarterly gross domestic product (GDP) growth rate data from OECD member states, we find that the medium-term recovery effect of stringent social distancing policies on economic growth is three times higher the short-term adverse effect. We additionally investigate social distancing measures with sub-components of GDP, as well as the conditioning roles of institutional factors.

Keywords: COVID-19; Pandemic; Social distancing polices; GDP growth (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:47:y:2022:i:pa:s1544612321005742

DOI: 10.1016/j.frl.2021.102639

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