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The Economic Impact of Covid-19 and Associated Lockdown Measures in China

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  • Charpe, Matthieu

Abstract

This paper assesses at the local level the economic impact of Covid-19 and associated lockdown measures in China using high frequency nighttime lights data. Building a model of monthly light intensity, lights dropped by a factor ranging between 13 and 18 percent in early 2020. This corresponds to a decline in economic activity of between 9 and 12 percent and a decline in employment of between 2.6 and 3.6 percent. At the local level, the majority of administrative entities followed a v-shaped recovery, while a smaller number followed a u-shaped recovery or a double dip. At province level, light intensity is explained by the number of cases and a lockdown measure. In particular, the increase in stringency index from 0 in December 2019 to 78 in April 2002 explains a decline in lights by 7.4 percent.

Suggested Citation

  • Charpe, Matthieu, 2022. "The Economic Impact of Covid-19 and Associated Lockdown Measures in China," MPRA Paper 114861, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114861
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    Keywords

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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