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The Economic Impact of Lockdowns: A Persistent Inoperability Input-Output Approach

Author

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  • Krista Danielle S. Yu

    (School of Economics, De La Salle University, Manila 0922, Philippines)

  • Kathleen B. Aviso

    (Chemical Engineering Department, De La Salle University, Manila 0922, Philippines)

  • Joost R. Santos

    (Department of Engineering Management & Systems Engineering, The George Washington University, Washington, DC 20052, USA)

  • Raymond R. Tan

    (Chemical Engineering Department, De La Salle University, Manila 0922, Philippines)

Abstract

The COVID-19 pandemic has forced governments around the world to implement unprecedented lockdowns, mandating businesses to shut down for extended periods of time. Previous studies have modeled the impact of disruptions to the economy at static and dynamic settings. This study develops a model to fulfil the need to account for the sustained disruption resulting from the extended shutdown of business operations. Using a persistent inoperability input-output model (PIIM), we are able to show that (1) sectors that suffer higher levels of inoperability during quarantine period may recover faster depending on their resilience; (2) initially unaffected sectors can suffer inoperability levels higher than directly affected sectors over time; (3) the economic impact on other regions not under lockdown is also significant.

Suggested Citation

  • Krista Danielle S. Yu & Kathleen B. Aviso & Joost R. Santos & Raymond R. Tan, 2020. "The Economic Impact of Lockdowns: A Persistent Inoperability Input-Output Approach," Economies, MDPI, vol. 8(4), pages 1-14, December.
    • Handle: RePEc:gam:jecomi:v:8:y:2020:i:4:p:109-:d:459403
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    References listed on IDEAS

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    Cited by:

    1. Arenas,Guillermo Carlos & Majune,Socrates Kraido & Montfaucon,Angella Faith Lapukeni, 2022. "The Impacts of Lockdown Policies on International Trade in the Philippines," Policy Research Working Paper Series 9911, The World Bank.
    2. Szczygielski, Jan Jakub & Charteris, Ailie & Bwanya, Princess Rutendo & Brzeszczyński, Janusz, 2023. "Which COVID-19 information really impacts stock markets?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 84(C).
    3. Joost R. Santos & John Frederick D. Tapia & Albert Lamberte & Christine Alyssa Solis & Raymond R. Tan & Kathleen B. Aviso & Krista Danielle S. Yu, 2022. "Uncertainty Analysis of Business Interruption Losses in the Philippines Due to the COVID-19 Pandemic," Economies, MDPI, vol. 10(8), pages 1-18, August.
    4. Ruoyu Chen & Chukiat Chaiboonsri & Satawat Wannapan, 2021. "The Perspective of Thailand Economy After the Effect of Coronavirus-19 Pandemics: Explication by Dynamic I-O Models and Agent-Based Simulations," SAGE Open, , vol. 11(2), pages 21582440211, June.
    5. Spyros Niavis & Dimitris Kallioras & George Vlontzos & Marie-Noelle Duquenne, 2021. "COVID-19 Pandemic and Lockdown Fine Optimality," Economies, MDPI, vol. 9(1), pages 1-26, March.
    6. Zeplin Jiwa Husada Tarigan & Hotlan Siagian & Ferry Jie, 2021. "Impact of Internal Integration, Supply Chain Partnership, Supply Chain Agility, and Supply Chain Resilience on Sustainable Advantage," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    7. Yuyun Hidayat & Titi Purwandari & Subiyanto & Sukono, 2021. "Identifying Unwanted Conditions through Chaotic Area Determination in the Context of Indonesia’s Economic Resilience at the City Level," Sustainability, MDPI, vol. 13(9), pages 1-15, May.

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