IDEAS home Printed from https://ideas.repec.org/a/gam/jworld/v1y2020i3p20-299d455799.html
   My bibliography  Save this article

Potential Economic Impacts of the COVID-19 Pandemic on South Asian Economies: A Review

Author

Listed:
  • Md. Monirul Islam

    (Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh
    Graduate School of Life and Environmental Sciences, University of Tsukuba, Tsukuba 305-8572, Japan)

  • Arifa Jannat

    (Graduate School of Life and Environmental Sciences, University of Tsukuba, Tsukuba 305-8572, Japan
    Institute of Agribusiness and Development Studies, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh)

  • Dewan Abdullah Al Rafi

    (Department of Agricultural Economics, Bangladesh Agricultural University, Mymensingh 2202, Bangladesh)

  • Kentaka Aruga

    (Graduate School of Humanities and Social Sciences, Saitama University, 255 Shimo-Okubo, Sakura-ku, Saitama 338-8570, Japan)

Abstract

The present research analyzes the potential economic impact of the COVID-19 pandemic on South Asian economies using a systematic review approach. The cause-effect relationship framework showed that the outbreak of COVID-19 slowed down the gross domestic product (GDP) along with major economic sectors and indicators in the South Asian economies. The short and long-run predicted scenario showed that, compared to the agriculture sector, the service and manufacturing sectors will be affected more seriously in all South Asian countries. It was found that governments in the region are trying their best to adopt and implement expansionary fiscal strategies to combat this situation. Many countries have included farmers and allied workers in the government’s support system to utilize resources. In order to maintain the balance of international trade, the import and export of essential items must be given special support. To cope with this situation, governments can invest money from different autonomous institutions to expand Micro, Small, and Medium Enterprises (MSME). The findings of this research will be helpful for policy planners to formulate appropriate programs for short and long-run demands, along with economic and fiscal policies to sustain and revive the economic activity in South Asia.

Suggested Citation

  • Md. Monirul Islam & Arifa Jannat & Dewan Abdullah Al Rafi & Kentaka Aruga, 2020. "Potential Economic Impacts of the COVID-19 Pandemic on South Asian Economies: A Review," World, MDPI, vol. 1(3), pages 1-17, December.
    • Handle: RePEc:gam:jworld:v:1:y:2020:i:3:p:20-299:d:455799
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-4060/1/3/20/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-4060/1/3/20/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alok Bhargava & Dean T. Jamison & Lawrence J. Lau & Christopher J. L. Murray, 2006. "Modeling the effects of health on economic growth," World Scientific Book Chapters, in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 20, pages 269-286, World Scientific Publishing Co. Pte. Ltd..
    2. Jong-Wha Lee & Warwick J. McKibbin, 2004. "Globalization and Disease: The Case of SARS," Asian Economic Papers, MIT Press, vol. 3(1), pages 113-131.
    3. Coibion, Olivier & Gorodnichenko, Yuriy & Weber, Michael, 2020. "The Cost of the COVID-19 Crisis: Lockdowns, Macroeconomic Expectations, and Consumer Spending," Department of Economics, Working Paper Series qt4jn1x65h, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    4. Anwar, Sajid & Cooray, Arusha, 2015. "Financial flows and per capita income in developing countries," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 304-314.
    5. Sobiech, Izabela, 2019. "Remittances, finance and growth: Does financial development foster the impact of remittances on economic growth?," World Development, Elsevier, vol. 113(C), pages 44-59.
    6. Wen Hai & Zhong Zhao & Jian Wang & Zhen-Gang Hou, 2004. "The Short-Term Impact of SARS on the Chinese Economy," Asian Economic Papers, MIT Press, vol. 3(1), pages 57-61.
    7. Haraguchi, Nobuya & Cheng, Charles Fang Chin & Smeets, Eveline, 2017. "The Importance of Manufacturing in Economic Development: Has This Changed?," World Development, Elsevier, vol. 93(C), pages 293-315.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Chunding & Lin, Xin, 2021. "COVID-19 and trade: Simulated asymmetric loss," Journal of Asian Economics, Elsevier, vol. 75(C).
    2. Oyelami, Lukman O. & Saibu, Olufemi M., 2021. "Macroeconomic Consequences of Covid-19 in a Small Open Economy: An Empirical Analysis of Nigeria," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(1), pages 113-122.
    3. Yothin Jinjarak & Ilan Noy & Quy Ta, 2022. "Pandemics and Economic Growth: Evidence from the 1968 H3N2 Influenza," Economics of Disasters and Climate Change, Springer, vol. 6(1), pages 73-93, March.
    4. Martin Motl, 2020. "Impacts of the COVID-19 pandemic on the world economy," Occasional Publications - Chapters in Edited Volumes, in: CNB Global Economic Outlook - April 2020, pages 12-24, Czech National Bank.
    5. George Verikios & Maura Sullivan & Pane Stojanovski & James Giesecke & Gordon Woo, 2016. "Assessing Regional Risks From Pandemic Influenza: A Scenario Analysis," The World Economy, Wiley Blackwell, vol. 39(8), pages 1225-1255, August.
    6. Smith, Richard D., 2006. "Responding to global infectious disease outbreaks: Lessons from SARS on the role of risk perception, communication and management," Social Science & Medicine, Elsevier, vol. 63(12), pages 3113-3123, December.
    7. Konstantinos Gkillas & Christoforos Konstantatos & Costas Siriopoulos, 2021. "Uncertainty Due to Infectious Diseases and Stock–Bond Correlation," Econometrics, MDPI, vol. 9(2), pages 1-18, April.
    8. Stefan Pahl & Clara Brandi & Jakob Schwab & Frederik Stender, 2022. "Cling together, swing together: The contagious effects of COVID‐19 on developing countries through global value chains," The World Economy, Wiley Blackwell, vol. 45(2), pages 539-560, February.
    9. Rutten, Martine & Reed, Geoffrey, 2009. "A comparative analysis of some policy options to reduce rationing in the UK's NHS: Lessons from a general equilibrium model incorporating positive health effects," Journal of Health Economics, Elsevier, vol. 28(1), pages 221-233, January.
    10. Pahl, Stefan & Brandi, Clara & Schwab, Jakob & Stender, Frederik, 2020. "Cling together, swing together: The contagious effects of COVID-19 on developing countries through global value chains," IDOS Discussion Papers 21/2020, German Institute of Development and Sustainability (IDOS).
    11. Luis Pedauga & Francisco Sáez & Blanca L. Delgado-Márquez, 2022. "Macroeconomic lockdown and SMEs: the impact of the COVID-19 pandemic in Spain," Small Business Economics, Springer, vol. 58(2), pages 665-688, February.
    12. Verikios, George, 2017. "The Importance of Periodicity in Modelling Infectious Disease Outbreaks," Conference papers 332907, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. McKibbin, Warwick & Fernando, Roshen, 2023. "The global economic impacts of the COVID-19 pandemic," Economic Modelling, Elsevier, vol. 129(C).
    14. Haoyu Wang & Yishan Zhang & Yingying Qin & Chao Chen & Beason Richard, 2022. "The Economic Impact of the SARS Epidemic with Related Interventions in China," IJERPH, MDPI, vol. 19(20), pages 1-17, October.
    15. Can Wang & Xianming Meng & Mahinda Siriwardana & Tien Pham, 2022. "The impact of COVID-19 on the Chinese tourism industry," Tourism Economics, , vol. 28(1), pages 131-152, February.
    16. Sándor Kovács & Mohammad Fazle Rabbi & Domicián Máté, 2021. "Global Food Security, Economic and Health Risk Assessment of the COVID-19 Epidemic," Mathematics, MDPI, vol. 9(19), pages 1-16, September.
    17. Christian Grimme & Robert Lehmann & Radek Šauer & Timo Wollmershäuser, 2020. "Assessment of Possible Economic Consequences of the Coronavirus Epidemic," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(03), pages 53-54, March.
    18. Guillaume Morel & Magali Jaoul-Grammare, 2023. "Do Pandemics Impact Macroeconomic Variables? A Cliometric Approach," Working Papers 01-23, Association Française de Cliométrie (AFC).
    19. Guillaume Morel & Magali Jaoul-Grammare, 2023. "Do Pandemics Impact Macroeconomic Variables? A Cliometric Approach," Working Papers of BETA 2023-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    20. Ngomba Bodi, Francis Ghislain, 2020. "Réflexions sur la crise actuelle de l’économie camerounaise liée au COVID-19 [Thoughts about the costs of the current crisis in the Cameroonian economy linked to COVID-19]," MPRA Paper 116377, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jworld:v:1:y:2020:i:3:p:20-299:d:455799. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.