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Coronavirus Disease 2019 and the Global Economy

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  • Hakan Yilmazkuday

    (Department of Economics, Florida International University)

Abstract

Using daily data on the coronavirus disease 2019 (COVID-19) cases from China and the rest of the world, this paper investigates the corresponding effects on the global economic activity. The empirical results based on a structural vector autoregression model using crude oil prices (COP) and the Baltic Exchange Dry Index (BDI) are consistent with increases in COVID-19 cases acting as negative demand shocks in the global economic activity (reflected as reductions in COP) and negative supply shocks in the global transportation of commodities (reflected as increases in BDI). The historical decomposition results further suggest that the effects of COVID-19 cases on COP and BDI have been mostly observed in the early COVID-19 period.

Suggested Citation

  • Hakan Yilmazkuday, 2022. "Coronavirus Disease 2019 and the Global Economy," Working Papers 2202, Florida International University, Department of Economics.
    • Handle: RePEc:fiu:wpaper:2202
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    References listed on IDEAS

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    Cited by:

    1. Li Chen & Guang Zhang, 2022. "COVID-19 Effects on Arbitrage Trading in the Energy Market," Energies, MDPI, vol. 15(13), pages 1-13, June.
    2. Famiglietti, Matthew & Leibovici, Fernando, 2022. "The impact of health and economic policies on the spread of COVID-19 and economic activity," European Economic Review, Elsevier, vol. 144(C).
    3. Ghareeb Ahmad, 2023. "Time Time Series Forecasting of Stock Price for Maritime Shipping Company in COVID-19 Period Using Multi-Step Long Short-Term Memory (LSTM) Networks," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 1728-1747, July.

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    More about this item

    Keywords

    COVID-19; Coronavirus; Baltic Dry Index; Crude Oil Prices;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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