New Evidence on the Interactions Between International Integration and Real Economy During the COVID-19 Crisis

İlkay Şendeniz-Yüncü

Chapter 4 in Financial Transformations Beyond the COVID-19 Health Crisis, 2022, pp 113-130 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This study investigates the relationships between economic and financial integration and the real economy before and during the COVID-19 pandemic in G7 countries. In our global and integrated world, the economic effects of the COVID-19 pandemic are inevitable. Trade restrictions have led to the slowdown of economic and financial activities, decreased the level of international integration, and decelerated the economic growth of countries. The results of this chapter document a positive and significant effect of trade measures and foreign direct investment (FDI) inflows on gross domestic product (GDP) per capita. The close connection between international integration and the real economy implies that the downward movement of integration due to the pandemic has an adverse impact on economic growth. International cooperation should be improved in order to develop effective policy measures on international trade and investment flows to countries to maintain economic recovery following the COVID-19 pandemic.

Keywords: COVID19; Pandemic; Pandemic Outbreak; Health Crisis; Economics; Macroeconomics; Finance; Sustainable Finance; Financial Crisis; Financial Integration; Economic Integration; Global Financial Crisis; Financial Institutions; Corporate Finance; Corporate Governance; Board of Directors; ESG; Corporate Social Responsibility; Sustainable Finance; Stock Markets; Financial Markets; Stock Market Behaviour; Firm Liquidity; Emerging Markets; China; Financial Institutions; Money; Banks; Banking System; Banking Sector; Business Groups; Resilience; Safe Heaven; Gold; Oil; Peer-to-Peer Lending Market; Foreign Trading; Stock Market Volatility; Extreme Events (search for similar items in EconPapers)
JEL-codes: F4 F62 G15 G17 G3 O16 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9781800610781_0004 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9781800610781_0004 (text/html)
Ebook Access is available upon purchase.

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:wsi:wschap:9781800610781_0004

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().