Can Covid-19 Change The Open Economy Model And Economic Stability In 7H-Countries?

ABSTRACT

This study discusses changes in the open economy model in supporting economic stability after the COVID-19 7H-countries, where the countries are Turkey, Uruguay, Belarus, Kenya, Mongolia, Indonesia, and Mexico. This research uses the simultaneous regression analysis method and ARDL Panel. The study results show that consumption, investment, government spending, and Inflation are open economic models that can support financial stability during the COVID-19 pandemic. However, the leading indicators on the panel only affect the Long Run, namely GDP, consumption, and exports. At the same time, for the Short Run, the open economy variables have not been able to become leading indicators of economic stability.