RESUMO
The service industry provides distributive services, producer services, personal services, and social services. These services largely breakdowns due to restrictions on border movements, confined travel and transportation services, a decline in international tourists' visitation, nationwide lockdowns, and maintaining social distancing in the population. Although these measures are highly needed to contain coronavirus, it decreases economic and financial activities in a country, which requires smart solutions to globally subsidize the services sector. The study used different COVID-19 measures, and its resulting impact on the services industry by using world aggregated data from 1975 through 2020. The study benefited from the Keynesian theory of aggregate demand that remains provided a solution to minimize economic shocks through stringent or liberalizing economic policies. The COVID-19 pandemic is more severe than the financial shocks of 2018 that affected almost all sectors of the globalized world, particularly the services sector, which has been severally affected by COVID-19; it is a high time to revisit economic policies to control pandemic recession. The study used quantiles regression and innovation accounting matrix to obtain ex-ante and ex-post analysis. The quantile regression estimates show that causes of death by communicable diseases, including COVID-19, mainly decline the share of services value added to the global GDP at different quantiles distribution. In contrast, word-of-mouth helps to prevent it from the transmission channel of coronavirus plague through information sharing among the general masses. The control of food prices and managing physical distancing reduces suspected coronavirus cases; however, it negatively affects the services sector's value share. The smart lockdown and sound economic activities do not decrease coronavirus cases, while they support increasing the percentage of the services sector to the global GDP. The innovation accounting matrix suggested that smart lockdown, managing physical distancing, effective price control, and sound financial activities will help to reduce coronavirus cases that will further translate into increased services value-added for the next ten years. The social distancing will exert a more considerable variance error shock to the services industry, which indicates the viability of these measures to contained novel coronavirus over a time horizon. The study used the number of proxies to the COVID-19 measures on the service sector that can be continued with real-time variables to obtain more inferences.
RESUMO
The pro-poor growth and environmental sustainability are the twin agendas widely discussed in environmental science literature. The technology-embodied growth helps to attain both agendas through knowledge sharing and technology transfer, which trickle down to the poor income group and improve their living standards. Hence, the role of information and communication technologies (ICTs) is deemed crucial in boosting economic growth and is under deep consideration to establish its role in reducing poverty and environmental pollution. The current study examines the long-run relationship between ICTs, poverty reduction, and ecological degradation in Pakistan using time series data from 1975-2018. The short- and long-run parameter estimates were obtained through the Autoregressive Distributed Lag (ARDL) model for robust inferences. The results substantiate the inverted U-shaped Environmental Kuznets Curve relationship between income and emissions with a turning point at US$1000 in the short-run and US$800 in the long-run. The results confirmed the decisive intervention of ICTs factors in the poverty reduction, i.e., computer communications and mobile-telephone-broadband subscriptions support to reduce poverty incidence with the mediation of inbound FDI in a country. As far as income inequality is concerned, it shows that computer services support minimizing income inequality via a channel of high-technology exports in a country. The technology embodied emissions verified in the long-run, where mobile-telephone-broadband subscriptions increase carbon emissions. Finally, mobile-telephone-broadband subscriptions and inbound FDI both are significant contributors to amplify the country's economic growth. The results conclude that poverty reduction and environmental sustainability agenda are achieved by developing green ICT infrastructure in a country.
