Did the Market Indices of G7 Countries Recover Evenly from the Start of COVID-19 (January 2020) Through December 2021?

Earlier work documented how COVID-19 affected the performance of the stock market indices around the world (Bieszk-Stolorz and Dmytrow, 2021;Lento and Gradojevic, 2021). Research has yet to investigate the longer-term recovery of these market indices. From a buy-and-hold perspective, this paper compares the recovery of indices in G7 countries and Hong Kong from the beginning of the pandemic in January 2020 to June 2021. The empirical results show that the null hypothesis of equal individual monthly returns in the indices of G7 countries and Hong Kong cannot be rejected. However, the null hypothesis of equal buy-and-hold returns in the indices of G7 countries and Hong Kong from January 2020 through June 2021 can be rejected, indicating that the market recovery status among the G7 countries and Hong Kong from the start of COVID-19 in January 2020 through June 2021 has been uneven and unequal. Copyright © 2022 GMP Press and Printing.

What effects will Covid-19 have on the G7 stock markets? New evidence from a cross-quantilogram approach

With several commodity and financial markets allegedly performing poorly during the coronavirus disease (Covid-19) pandemic, the objective of this study is to examine how the pandemic has affected stock markets in the G7 economies. The study applies the recently developed cross-quantilogram model introduced by Han et al. (2016) to investigate quantile dependence between the conditional stock return distributions of G7 countries and the total daily global confirmed Covid-19 cases across investment horizons. The results reveal that the cross-quantile dependence between the confirmed Covid-19 cases and G7 stock returns is most significant in the short and medium term. The interlinkage weakens as the lag period lengthens. These findings imply that, in the short and medium term, stock markets in the G7 countries reacted negatively and disproportionately to the increase in the number of daily verified Covid-19 cases. Besides, cross-quantile correlations calculated from recursive subsamples indicate that they change over time, especially in low and medium quantiles, suggesting that they are prone to jumps and discontinuities in the dependence structures. The findings can aid investors and policymakers in better understanding stock market dynamics, particularly during times of great stress and unknown events.

EVIDENCE FROM DYNAMIC SYMMETRIC AND ASYMMETRIC CAUSALITY TESTS ON THE RELATIONSHIP BETWEEN TAX REVENUES AND PUBLIC EXPENDITURES IN G7 COUNTRIES

In this study, it is aimed to determine the symmetric and asymmetric causal relations between tax revenues and public expenditures in G7 countries. Annual data for the years 1990 through 2021 were used to determine the relationships between the variables. The Hacker and Hatemi-J (2012) bootstrap symmetric causality test, the Hatemi-J (2012) bootstrap asymmetric causality test, and the Hatemi-J (2021) dynamic bootstrap symmetric and asymmetric causality tests were used. The symmetric and asymmetric causality tests revealed few causal linkages between the variables, however the dynamic symmetric and asymmetric causality tests revealed more causal relationships. According to our research, it is essential to use dynamic analysis methods that can generate unique outcomes for sub-periods rather than analysis methods that generate a single result for the entire period in dynamic domains like public expenditure and national tax policies. In reality, it has been noted that throughout the Quantitative Easing period introduced following the 2008 Global Financial Crisis in the USA and during the COVID 19 process, public spending have expanded independently of budget revenues. Similar circumstances occurred in France during the EU debt crisis (2013– 2017), in Italy during the Great Recession of 2007–2009, and during COVID 19. When the global economic environment was favorable between 2017 and 2019, Germany, United Kingdom, and Italy organized their public expenditures in accordance with tax revenues, functioning within the framework of the Tax-Spend Hypothesis. As a result, for the effectiveness of fiscal policy, nations may use various fiscal policy techniques during various economic conjuncture times. © 2022, Symmetrion. All rights reserved.

Corporate payout, cash holdings, and the COVID-19 crisis: Evidence from the G-7 countries.

This paper examines the impact of the COVID-19 pandemic on the adjustments of dividends and share repurchases of publicly listed firms in the G-7 countries. Firms in the United Kingdom, Germany, France, and Italy experienced a widespread cut in dividends, while firms in the United States and Canada cut cash payout more via share repurchases, with Japanese firms in between. Corporate cash holdings helped mitigate the negative impact of COVID on payout adjustments, but the impact was less significant for European firms.

Vicious Cycle of Economic Growth, PM2.5 and COVID-19: Evidence from G7 Countries

Developed countries with high use of fossil fuels in production can harm the environment by contributing more to the formation of greenhouse gases on a global scale. Air pollution is expected to increase the number of COVID-19 cases in G7 countries with significant industrial output. The aim of the study is to reveal the awareness of the role of air pollution due to traditional industrial production which caused the spread of the epidemic, both on economic growth and its role in the spread of the epidemic. Research is based on monthly data covering the period 2019:12-2021:7. The empirical analysis has been utilized for the panel cointegration test and the dynamic causality analysis. Particles classified as PM2.5 have been utilized as air pollution indicators. Health expenses, in order to control general trends on economic growth and pollution, were also included in the study. The findings of this study indicate that PM2.5 particle ratios and COVID-19 cases are increasing while economic growth is taking place in the G7 countries. If these data are associated with the use of fossil fuels in industries, they will contribute to the creation of public policies that encourage a new generation of energy sources in production. [ FROM AUTHOR] Copyright of Polish Journal of Environmental Studies is the property of Scientific Investigation Committee and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full . (Copyright applies to all s.)

Spatiotemporal Variation and Driving Factors of Embodied Carbon in China-G7 Trade

China and G7 countries contribute 70% global GDP and 55% global carbon emissions. The carbon leakage between China and G7 is a crucial issue in achieving the synergetic emission abatement globally. The motivation of this study is to evaluate the embodied carbon transfer between China and G7 in the trade between 2000 and 2014, and investigate the driving factors that impact the embodied carbon trend. A multiregional input–output (MRIO) model based on the WIOD database is constructed, and a structural decomposition analysis (SDA) is employed. The results indicate that China plays the role of net exporter of embodied carbon in trade with G7, which mainly flows to the US (5825.67 Mt), Japan (3170.36 Mt) and Germany (1409.93 Mt). However, China’s embodied carbon exports to the G7 show an inverted U-shaped trend with a turning point after financial crisis, while the G7’s embodied carbon exports to China continue to rise. The conclusion is that to achieve the climate goal of carbon neutrality, it is not enough to rely solely on the low-carbon transition on the production side, the demand side should also be adjusted.

COVID-19 pandemic and risk dynamics of financial markets in G7 countries

Purpose>The purpose of this study is twofold: to examine the effects of the COVID-19 pandemic on the risk dynamics of stock and bond markets in G7 countries;and to examine if the stock-bond risk dynamics can be linked to government measures to contain the pandemic.Design/methodology/approach>To examine the pandemic impact on the risk dynamics of the bond and stock markets, this study chooses G7 countries for their efficient financial market properties. This study uses standard generalized autoregressive conditional heteroskedasticity (GARCH) (1,1) and exponential GARCH (1,1) models to determine the most volatile and sensitive market, most persistent market during the crisis and the leverage effect between stock and bond markets. This study then uses a panel study to investigate whether this volatility in stock and bond markets is affected by the COVID-19 cases and various government responses (fiscal stimulus packages, monetary policy, emergency investment in health care and vaccine investment).Findings>The findings of the study confirm that the bad news of the pandemic is causing higher volatility than good news for all seven stock markets. Canadian stock and bond markets are the most volatile, and Italian bond and stock markets are the most sensitive G7 countries. Japan has shown the highest persistence, and the stock market exhibits higher leverage than the bond market. Fiscal stimulus packages are helping to reduce bond market volatility, but none of these measures are effective in the stock market.Research limitations/implications>The pandemic is still spreading, and the rate at which it spreads wildly will always pose a limitation to any attempt to examine its full effect.Practical implications>Investigation of market volatility will help policymakers and market players formulate the best strategies to overcome and exit the crisis and plan post-pandemic solutions. It provides valuable insights for investors to rebalance their portfolios during highly volatile markets while preserving their risk appetite and investment objectives.Originality/value>The paper provides evidence on the impact of the pandemic-induced crisis and the respective government responses on the volatility of competing capital markets (stock and bond) in countries that are considered most efficient in reflecting news.