Covid-19 impact on Latin and Asian stock markets

Purpose: The purpose of this paper is to investigate the dynamic relationship between 19 pandemic and government actions, such as governmental response index and economic support packages. Design/methodology/approach: The authors use a panel dataset of 10 American and Latin countries for the period spanning from January 2020 to April 2021 to analyze the effect of government actions on stock market returns. The authors provide robust test results that improve the understanding of the impact of the pandemic on stock market indices through the break-up structure method and the new measure of Covid-19 extracted from Narayan et al. (2021) study. Findings: Empirical results show the harmful effect of the corona virus on stock prices, hence the risk adverse behavior of investors. On the other hand, the quantitative approach reveals that the positive impact of government actions is degraded during Covid-19. Originality/value: This article highlight that government actions may be effective in reducing new infections but could generate perverse economic impact through increasing uncertainty. The authors conclude that the adjustment of macroeconomic factors and the integration of financial news improve the forecasting performance of the model based on health news. © 2022, Emerald Publishing Limited.

Economic issue and technological resilience of pre- and post-COVID-19

Purpose: The purpose of this paper is to investigate the impact of COVID-19 pandemic on the changing relationship between technology and economic activity in MENA countries. Design/methodology/approach: The generalized method of moments (GMM) was applied to explore the presence of dynamic causality between technology, inflation, unemployment, foreign direct investment, trade opening, gross fixed capital formation and economic growth for 14 MENA countries before and after COVID-19. Findings: Empirical evidence shows that the economic predictor variables change signs and impact negatively the economic growth as a result of the adverse consequences of the MENA health crisis. More interestingly, there is a unique, positive, meaningful relationship between ICT and economic growth. Originality/value: The results show that economic resilience in MENA is significantly affected by digital infrastructure during the epidemic crisis. The authors conclude that macroeconomic adjustment and innovation improve the predictive performance of the health news model. Countries could take strong measures to support new strategies to strengthen their innovation competitiveness. © 2022, Ines Abdelkafi, Youssra Ben Romdhane and Haifa Mefteh.

Impact of Information and Communication Technologies (ICT) on Economic Growth During the Corona-Virus Pandemic

This article is an attempt to assess in real time the colossal impact of the coronavirus pandemic (COVID-19) on the health, economic and social sectors in MATE countries. This study reviews the literature on the negative impacts of epidemic uncertainty on economic activity.In fact, we used Pedroni’s co-integration analysis to determine the determinants of economic growth over the 2001-2020 period.Moreover, empirical results show that the decline of economic growth in these countries was triggered by a combination of a number of deaths, rising unemployment rates and a decline of gross fixed capital formation and education spending.All these costs are due to the containment measures which imply a reduction in economic activity. More than that, we find that Information and Communication Technologyplays a driving role in economic growth with a two-way link between the Internet User and GDP. This document helps promote future research and technology development to provide better solutions to fight the COVID-19 pandemic and future pandemics and thereby save the economic activity. © 2022, University of National and World Economy. All rights reserved.

Covid-19 impact on Latin and Asian stock markets

Purpose: The purpose of this paper is to investigate the dynamic relationship between 19 pandemic and government actions, such as governmental response index and economic support packages. Design/methodology/approach: The authors use a panel dataset of 10 American and Latin countries for the period spanning from January 2020 to April 2021 to analyze the effect of government actions on stock market returns. The authors provide robust test results that improve the understanding of the impact of the pandemic on stock market indices through the break-up structure method and the new measure of Covid-19 extracted from Narayan et al. (2021) study. Findings: Empirical results show the harmful effect of the corona virus on stock prices, hence the risk adverse behavior of investors. On the other hand, the quantitative approach reveals that the positive impact of government actions is degraded during Covid-19. Originality/value: This article highlight that government actions may be effective in reducing new infections but could generate perverse economic impact through increasing uncertainty. The authors conclude that the adjustment of macroeconomic factors and the integration of financial news improve the forecasting performance of the model based on health news. © 2022, Emerald Publishing Limited.

Economic resilience to the FDI shock during the COVID-19 pandemic: evidence from Asia

Purpose The purpose of this paper is to study the impact of economic factors on foreign direct investment (FDI) inflows into Asian region before and after the COVID-19 pandemic. Design/methodology/approach The study used the generalized method of moments (GMM) technique to examine the impact of economic growth, domestic investment and trade openness on FDI in the Asian region, in two periods from 1996 to 2018 and from 2019 to 2020. Findings In the pre-COVID-19 period, the estimated result shows that the economic growth, domestic investment, imports and exports positively impact FDI. In the post-COVID-19 period, the FDI is influenced by the strength of the economic characteristics of the region. The main findings indicate that economic growth has a positive and significant effect on FDI inflows into Asia. The findings also show that the economic resilience to attract FDI in Asia is significantly affected by economic growth and positively affected by trade openness and government responses during the pandemic. Originality/value The study suggests the Asian governments increasing the domestic investment and improving the quality of trade openness.