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Analyzing The Resilience Of The Central And Eastern European Stock Markets During The Covid-19 Pandemic

Author

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  • Ștefan Constantin Radu
  • Beatrice Maria Poenaru

Abstract

In the recent period there has been much speculation regarding the adaptation of the economy to the COVID-19 pandemic, and to the fact that markets are gradually becoming resilient to news about the pandemic. This theory may be applicable for the North American and Western European markets, but when it comes to more volatile and less liquid markets like the ones analyzed in this article, Romania, Poland and Bulgaria, the effects can be divergent. Our proposal is a method for assessing the influence of the COVID-19 pandemic on the stock markets of the Central and Eastern European countries. For each of the country taken into consideration, the main stock exchange index has been selected, BET, WIG20, SOFIX, and the influence of the daily COVID-19 registered cases has been examined. The sampled period is situated between the 3rd of September and the 29th of October of the current year, 2021. The volatility fluctuations, correlation and the impact of the chosen markets have been investigated through statistical and econometric methods, using panel data for Vector Error Correction model.

Suggested Citation

  • Ștefan Constantin Radu & Beatrice Maria Poenaru, 2021. "Analyzing The Resilience Of The Central And Eastern European Stock Markets During The Covid-19 Pandemic," Management Strategies Journal, Constantin Brancoveanu University, vol. 54(4), pages 61-68.
    • Handle: RePEc:brc:journl:v:54:y:2021:i:4:p:61-68
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    References listed on IDEAS

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    More about this item

    Keywords

    COVID-19; resilience; regional development; Vector Error Correction; panel data;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • G1 - Financial Economics - - General Financial Markets

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