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Sustainable economic performance and natural resource price volatility in the post-covid-pandemic: Evidence using GARCH models in Chinese context

Author

Listed:
  • Pham Thi, Thuy Dung
  • Do, Hai Dung
  • Paramaiah, Ch
  • Duong, Nam Tien
  • Pham, Van Kien
  • Shamansurova, Zilola

Abstract

Recent research demands the influence of COVID-19 on every field of life. Plenty of research work investigated the influence of the volatility of natural resources on economic advancements during COVID-19, though, the impact of the pandemic still persists in the post-pandemic era. Therefore, the current research aims to explore the connectedness of the volatility of oil prices and sustainable economic development during the era after the pandemic. The slump in prices of oil during the pandemic is subject to major concerns in the era after the pandemic. Although this connection is explored by recent researchers, current research work underwrites the prevailing literature by inspecting the connection between oil price volatility and sustainable economic performance during and post COVID-pandemic in China over the period comprising January 2020 to April 2023. The study employs the ordinary least squares regression (OLS), generalized Autoregressive conditional heteroskedasticity (GARCH) (1,1), and Threshold GARCH econometric models to explore the connection between the said constructs. The outcomes infer that the volatility of oil prices is negatively associated with the sustainable economic performance in China during Post COVID-pandemic. The research infers that the vulnerability of the oil prices is more during and after the pandemic eras in China. On the basis of the results, this research work recommends introducing technological innovations, and protective trials to avoid the impact of pandemics on the connection between natural resource volatility and sustainable economic performance.

Suggested Citation

  • Pham Thi, Thuy Dung & Do, Hai Dung & Paramaiah, Ch & Duong, Nam Tien & Pham, Van Kien & Shamansurova, Zilola, 2023. "Sustainable economic performance and natural resource price volatility in the post-covid-pandemic: Evidence using GARCH models in Chinese context," Resources Policy, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:jrpoli:v:86:y:2023:i:pa:s0301420723008498
    DOI: 10.1016/j.resourpol.2023.104138
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