Empirical analysis of government interventions on Jordan's stock market during the COVID-19 pandemic: An ARDL approach

Noor Aldeen Kassem Al-Alawnh (), Muzafar Shah Habibullah, Resul Sapar (), Sewar Rafat Salameh () and Sara Khaled Alzu’bi ()

Asian Journal of Economic Modelling, 2024, vol. 12, issue 1, 76-92

Abstract: The objective of this study was to examine the impact of government actions on the Amman Stock Market's performance over the period from March 1, 2020, to June 30, 2021. The research uses the ARDL technique to examine the immediate and long-term connections between the variables. The findings indicate that government actions have an impact on the Amman stock market. From a larger standpoint, the research found that government actions and the stringency index had a detrimental impact on the Amman stock market in the long term. In contrast, the Containment Health Index had a favourable impact on the Amman Stock Market. Our analysis found a negative correlation between the number of new COVID-19 cases and the performance of the Amman Stock Market. These results highlight the complex relationship between government activities, market strictness, and public health initiatives in influencing the behaviour of financial markets. This finding is consistent with and strengthens the outcomes of prior research, enhancing our comprehension of how pandemic-related variables impact the performance of the stock market. The study's results are very relevant for politicians, decision-makers, and investors, offering crucial insights to inform their decision-making processes in times of future crises and uncertainty.

Keywords: ARDL approach; Government response; Jordan; Pandemic response strategies; Stock market; Stringency index. (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5009/article/view/4992/7868 (application/pdf)

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:asi:ajemod:v:12:y:2024:i:1:p:76-92:id:4992

Access Statistics for this article

More articles in Asian Journal of Economic Modelling from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().