Economic winners and losers of the COVID-19 pandemic: evidence from New Zealand

Rashid Ameer

Journal of Economic Studies, 2025, vol. 53, issue 1, 47-66

Abstract: PurposeThis study investigates the impacts of the COVID-19 pandemic on the primary, manufacturing, and services industries in New Zealand.Design/methodology/approachThis study uses quantitative research design and quarterly panel data at industry level. It uses macroeconomic data and novel contextual variables capturing the impacts of the social restrictions and lockdowns in a linear regression model which is estimated using Two Stage Least square and Difference-in-Difference approach.FindingsThe findings reveal a stark contrast between services and primary industry sectors, while the Information, Media, and Telecom sector experienced a substantial 2.8% GDP gain, driven by increased online activity and remote work, the Forestry and Logging sectors suffered significant losses of 5.5%. Furthermore, using a Difference-in-Difference estimation approach, the study provides evidence of asymmetric impacts on essential and non-essentials industry sectors. These disparities highlight the role of government policies, particularly in designating certain sectors as essential services, in shaping the pandemic's winners and losers.Research limitations/implicationsThis study focuses only on five macroeconomic variables such as GDP at industry level, unemployment, inflation, immigration and retail spending.Practical implicationsThe main findings are of particular importance to business strategist, managers and policymakers in New Zealand and other developed countries, as understanding the drivers that transmitted supply and demand shocks will enable better quantification and comprehension of the pandemic’s impacts that are still being felt globally.Originality/valueThis study provides new empirical evidence using macro and microeconomic level indicators that have not been studies empirically in the COVID-19 pandemic context.

Keywords: Gross domestic product; Industries; COVID-19 pandemic; New Zealand (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jespps:jes-05-2024-0357

DOI: 10.1108/JES-05-2024-0357

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