Impact of Coronavirus Pandemic on the Global Economy: Demand and Supply Shocks

Chinenye Ifeoma Nwokolo (), Matthew Ikechukwu Ogbuagu () and Onyebuchi Iwegbu
Additional contact information
Chinenye Ifeoma Nwokolo: University of Lagos
Matthew Ikechukwu Ogbuagu: Federal University Oye-Ekiti

Ovidius University Annals, Economic Sciences Series, 2020, vol. XX, issue 1, 50-60

Abstract: This paper examines the dynamic effects of coronavirus pandemic on the global economy by pitching its searchlights on the demand and supply shocks. The study employed Vector Autoregression (VAR) technique and Granger causality test; the Granger causality test revealed that COVID-19 pandemic does not trigger change in regional stock markets and commodity prices within these regions; except for the price of natural gas which changed as a result of the COVID19 pandemic in Europe. Besides the EURONEXT market in Eastern Mediterranean region, the impulse response shows that other regional stock markets responded positively to shocks in daily report of COVID-19 confirmed cases. The study concludes that within the study period, the HSBC’s stock index was the worst-hit. Economies must embrace aggressive efforts at developing COVID19 vaccine as well as coordinated policy measures at increasing the stock market pause above 15 minutes whenever stock prices fall below the lower bound threshold.

Keywords: Coronavirus Pandemic; Global Economic; Demand and Supply Shock (search for similar items in EconPapers)
JEL-codes: E30 G01 G02 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://stec.univ-ovidius.ro/html/anale/RO/2020/Section%201/7.pdf (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:ovi:oviste:v:xx:y:2020:i:1:p:50-60

Access Statistics for this article

Ovidius University Annals, Economic Sciences Series is currently edited by Spatariu Cerasela

More articles in Ovidius University Annals, Economic Sciences Series from Ovidius University of Constantza, Faculty of Economic Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Gheorghiu Gabriela ().