The Impact of the COVID-19 on Economic Sustainability—A Case Study of Fluctuation in Stock Prices for China and South Korea
Open Access
- 10 June 2021
- journal article
- research article
- Published by MDPI AG in Sustainability
- Vol. 13 (12), 6642
- https://doi.org/10.3390/su13126642
Abstract
The coronavirus disease (COVID-19) pandemic has had a global impact on lives, livelihoods, and economies. This study investigates whether a contagious infectious disease can affect the prices of the Chinese and Korean stock markets. Specifically, we aim to discover discrepancies in the impact of COVID-19 on the stock prices of China and South Korea through panel data. To test these discrepancies, we first regressed the stock indices on confirmed cases and deaths. We then validated the stability of coefficients over the past days. The empirical results show that (1) responses of stock indices are stable and impulsive and (2) response patterns toward COVID-19 events considerably vary across nations, especially in the counties such as China and South Korea.Keywords
This publication has 47 references indexed in Scilit:
- RNA based mNGS approach identifies a novel human coronavirus from two individual pneumonia cases in 2019 Wuhan outbreakEmerging Microbes & Infections, 2020
- Preventing Controversial CatastrophesThe Review of Asset Pricing Studies, 2018
- Did the S.A.R.S. epidemic weaken the integration of Asian stock markets? Evidence from smooth time-varying cointegration analysisEconomic Research-Ekonomska Istraživanja, 2018
- The Path Length Prediction of MANET Using Moving Average ModelProcedia Technology, 2013
- Scaled critical factor index for optimal resource allocation in service and lean constructionInternational Journal of Sustainable Economy, 2013
- Dynamic correlation analysis of financial contagion: Evidence from Asian marketsJournal of International Money and Finance, 2007
- Using lessons from the past to plan for pandemic fluBMJ, 2006
- Sustainability: Ecological and Economic PerspectivesLand Economics, 1997
- Chaos and Nonlinear Dynamics: Application to Financial MarketsThe Journal of Finance, 1991
- The Adjustment of Stock Prices to New InformationInternational Economic Review, 1969