The causal relationship between the COVID-19, Delta and Omicron pandemic and the air transport industry: Evidence from China

Tsung-Pao Wu, Yi Zheng, Hung-Che Wu and Ruixin Deng

Journal of Air Transport Management, 2024, vol. 116, issue C

Abstract: This paper employs a novel multivariate panel Granger causality approach to examine the relationship between the 2019 coronavirus disease, Delta and Omicron pandemic and 14 air transport companies and airports during a certain time period, taking into account both the interdependence and heterogeneity among these air transport companies and airports. Empirical results show that 10 out of 14 air transport companies and airports have a one-way direction of Granger causality between pandemic shocks and stock returns, among which five air transport companies and airports have bilateral relationships. The results show that six air transport companies and airports are Granger “leading†the pandemic, arguing that the adjustment speed of expectations of exogenous shocks and the policies may account for the counterintuitive causal relationship which brings new insights into the heterogeneity in expectations.

Keywords: Air transport companies and airports; COVID-19; Delta and Omicron pandemic; China; Bootstrap multivariate panel Granger causality (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0969699724000097
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:116:y:2024:i:c:s0969699724000097

DOI: 10.1016/j.jairtraman.2024.102544

Access Statistics for this article

Journal of Air Transport Management is currently edited by Anne Graham

More articles in Journal of Air Transport Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().