The impact of COVID-19 on industry-related characteristics and risk contagion

Zhong-fei Li, Qi Zhou, Ming Chen and Qian Liu

Finance Research Letters, 2021, vol. 39, issue C

Abstract: We use the cutting-edge causal forest algorithm to analyze the heterogeneous treatment effects of the COVID-19 outbreak on China's industry indexes. The variable importance index is used with the causal forest and complex network methods to analyze the characteristics of industrial relations and the types of industry risk contagion before and after the COVID-19 outbreak. The results show that the heterogeneity of industries was significantly weakened during the COVID-19 outbreak. In addition, the COVID-19 outbreak changed the original structure of the industry-related network, which shifted to a star network structure with leisure services at the core. It also changed the type of risk contagion between industries, from the original middleman risk type to the input risk type.

Keywords: COVID-19; Causal forest; Network structure; Industry risk contagion (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:39:y:2021:i:c:s154461232100012x

DOI: 10.1016/j.frl.2021.101931

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