Hasan, Md. Bokhtiar and Mahi, Masnun and Sarker, Tapan and Amin, Md. Ruhul (2021) Spillovers of the COVID-19 pandemic: Impact on global economic activity, the stock market, and the energy sector. Journal of Risk and Financial Management, 14 (5). ISSN 1911-8066, DOI https://doi.org/10.3390/jrfm14050200.
Full text not available from this repository.Abstract
In this study, we examine the effect of the COVID-19 pandemic on global economic activity, the stock market, and the energy sector considering the sizable damaging impacts in these crucial aspects. Our results, based on the structural vector autoregression (SVAR) model for the data from 21 January 2020, to 26 February 2021, indicate that the COVID-19 cases significantly and negatively impact all the endogenous variables such as Baltic dry index (BDI), MSCI world index (MSCI), and MSCI world energy index (MSCIE). Our results also reveal that of the three variables, the stock markets indices (MSCI and MSCIE) are comparatively more affected by COVID-19 cases. The findings imply that the stock markets are more sensitive to the COVID-19 pandemic than the real economy. The results further indicate that of the three variables, the MSCIE index is the most affected by COVID-19 due to two factors: one is the dwindling power consumption caused by COVID-19 and the other is the decline in oil price because of the Russia-OPEC price war. Our findings enhance the understanding of the spillover impacts of the global health crisis on economic activity, the stock market, and the energy sector. Moreover, our study offers insights for policymakers and governments into the relationship dynamics of COVID-19 that would help them be more cautious in taking preventive measures against the health crisis to save the economy, the stock market, and the energy sector from falling into a more deepened crisis.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | COVID-19;Coronavirus;Pandemic;Economic activity;Stock market;Energy sector;Spill over;Structural VAR |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HF Commerce H Social Sciences > HF Commerce > Business H Social Sciences > HG Finance |
| Divisions: | Faculty of Business and Economics |
| Depositing User: | Ms Zaharah Ramly |
| Date Deposited: | 17 Sep 2022 09:22 |
| Last Modified: | 17 Sep 2022 09:22 |
| URI: | http://eprints.um.edu.my/id/eprint/35139 |
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