IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v87y2023ipbs0301420723010000.html
   My bibliography  Save this article

Assessing the COVID-19 impact on economy, health and natural resource prices: An evidence from selected Asian economies

Author

Listed:
  • Zheng, ShiYong
  • Li, Xiao
  • Li, Juan
  • Li, Biqing
  • Hafeez, Muhammad

Abstract

This study examines the impact of COVID-19 policies on industrial production and natural resource prices in four Asian economies, Bangladesh, China, India, and Pakistan. It examines the relationship between health indicators and economic performance. The data spans 2016M01 to 2022M12. The study finds that government response is most effective in controlling the epidemic, while economic support index is counterproductive. Panel cointegration technique under dynamic OLS assumption is used for empirical findings. We find robust results for the hypothesis that the infection outbreak is most commonly a result of economic activity. These results imply that the natural resource prices are subject to the pandemic outbreak. The hypothesis that these selected Asian economies show resilience to the future epidemic shocks is not supported and the preparedness for any future calamity is not observed. For short run, authorities should focus on reducing intensity and protecting vulnerable individuals during natural disasters. For medium term, government measures and economic support are crucial for controlling outbreaks, but they also affect the labor market. Long-term, governments should increase health budgets for infrastructure to mitigate future calamities.

Suggested Citation

  • Zheng, ShiYong & Li, Xiao & Li, Juan & Li, Biqing & Hafeez, Muhammad, 2023. "Assessing the COVID-19 impact on economy, health and natural resource prices: An evidence from selected Asian economies," Resources Policy, Elsevier, vol. 87(PB).
    • Handle: RePEc:eee:jrpoli:v:87:y:2023:i:pb:s0301420723010000
    DOI: 10.1016/j.resourpol.2023.104289
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723010000
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.104289?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Birchenall, Javier A. & Soares, Rodrigo R., 2009. "Altruism, fertility, and the value of children: Health policy evaluation and intergenerational welfare," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 280-295, February.
    2. Bhaskar Bagchi & Biswajit Paul, 2023. "Effects of Crude Oil Price Shocks on Stock Markets and Currency Exchange Rates in the Context of Russia-Ukraine Conflict: Evidence from G7 Countries," JRFM, MDPI, vol. 16(2), pages 1-18, January.
    3. Heppi Millia & Pasrun Adam & Zainuddin Saenong & Muh. Yani Balaka & Yuwanda Purnamasari Pasrun & La Ode Saidi & Wali Aya Rumbia, 2020. "The Influence of Crude Oil Prices Volatility, the Internet and Exchange Rate on the Number of Foreign Tourist Arrivals in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 280-287.
    4. Stijns, Jean-Philippe, 2006. "Natural resource abundance and human capital accumulation," World Development, Elsevier, vol. 34(6), pages 1060-1083, June.
    5. Mutiu Abimbola Oyinlola & Abdulfatai Adedeji, 2019. "Human capital, financial sector development and inclusive growth in sub-Saharan Africa," Economic Change and Restructuring, Springer, vol. 52(1), pages 43-66, February.
    6. Lardic, Sandrine & Mignon, Valerie, 2006. "The impact of oil prices on GDP in European countries: An empirical investigation based on asymmetric cointegration," Energy Policy, Elsevier, vol. 34(18), pages 3910-3915, December.
    7. Atil, Ahmed & Nawaz, Kishwar & Lahiani, Amine & Roubaud, David, 2020. "Are natural resources a blessing or a curse for financial development in Pakistan? The importance of oil prices, economic growth and economic globalization," Resources Policy, Elsevier, vol. 67(C).
    8. Pragyan Deb & Davide Furceri & Jonathan D. Ostry & Nour Tawk, 2022. "The Economic Effects of COVID-19 Containment Measures," Open Economies Review, Springer, vol. 33(1), pages 1-32, February.
    9. Guan, Lu & Zhang, Wei-Wei & Ahmad, Ferhana & Naqvi, Bushra, 2021. "The volatility of natural resource prices and its impact on the economic growth for natural resource-dependent economies: A comparison of oil and gold dependent economies," Resources Policy, Elsevier, vol. 72(C).
    10. Zheng, ShiYong & Liu, Hua & Hafeez, Muhammad & Wang, Xiaofeng & Fahad, Shah & Yue, Xiao-Guang, 2023. "Testing the resource curse hypothesis: The dynamic roles of institutional quality, inflation and growth for Dragon," Resources Policy, Elsevier, vol. 85(PA).
    11. Atolia, Manoj & Papageorgiou, Chris & Turnovsky, Stephen J., 2021. "Re-opening after the lockdown: Long-run aggregate and distributional consequences of COVID-19," Journal of Mathematical Economics, Elsevier, vol. 93(C).
    12. Chen, Fei-fei & Wang, Qiu-Su & Umar, Muhammad & Zheng, Liya, 2023. "Towards sustainable resource management: The role of governance, natural resource rent and energy productivity," Resources Policy, Elsevier, vol. 85(PA).
    13. Sadiqa, Bibi Aisha, 2023. "Overcoming Vaccine Skepticism in Pakistan: A Cross-Sectional Study of Public Knowledge, Attitudes, and Behaviors towards COVID-19 Vaccination," MPRA Paper 116204, University Library of Munich, Germany, revised 25 Jan 2023.
    14. Rosnawintang Rosnawintang & Tajuddin Tajuddin & Pasrun Adam & Yuwanda Purnamasari Pasrun & La Ode Saidi, 2021. "Effects of Crude Oil Prices Volatility, the Internet and Inflation on Economic Growth in ASEAN-5 Countries: A Panel Autoregressive Distributed Lag Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 15-21.
    15. Ahmed Atil & Kishwar Nawaz & Amine Lahiani & David Roubaud, 2020. "Are natural resources a blessing or a curse for financial development in Pakistan? The importance of oil prices, economic growth and economic globalization," Post-Print hal-03676031, HAL.
    16. David Bourghelle & Fredj Jawadi & Philippe Rozin, 2021. "Oil price volatility in the context of Covid-19," International Economics, CEPII research center, issue 167, pages 39-49.
    17. Umar, Muhammad & Mirza, Nawazish & Ribeiro-Navarrete, Samuel, 2023. "The impact of financial restatements on sell-side recommendation accuracy," Finance Research Letters, Elsevier, vol. 55(PA).
    18. Alam, Md Shabbir & Murshed, Muntasir & Manigandan, Palanisamy & Pachiyappan, Duraisamy & Abduvaxitovna, Shamansurova Zilola, 2023. "Forecasting oil, coal, and natural gas prices in the pre-and post-COVID scenarios: Contextual evidence from India using time series forecasting tools," Resources Policy, Elsevier, vol. 81(C).
    19. Claudiu Albulescu, 2020. "Coronavirus and financial volatility: 40 days of fasting and fear," Papers 2003.04005, arXiv.org.
    20. Yue Zhang, 2021. "The COVID-19 Outbreak and Oil Stock Price Fluctuations - Evidence From China," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 2(3), pages 1-5.
    21. Hyunjoo Kim Karlsson & Yushu Li & Ghazi Shukur, 2018. "The Causal Nexus between Oil Prices, Interest Rates, and Unemployment in Norway Using Wavelet Methods," Sustainability, MDPI, vol. 10(8), pages 1-15, August.
    22. Hooker, Mark A., 1996. "What happened to the oil price-macroeconomy relationship?," Journal of Monetary Economics, Elsevier, vol. 38(2), pages 195-213, October.
    23. Corbet, Shaen & Larkin, Charles & Lucey, Brian, 2020. "The contagion effects of the COVID-19 pandemic: Evidence from gold and cryptocurrencies," Finance Research Letters, Elsevier, vol. 35(C).
    24. Cao, Yanyan & Xiang, Shihui, 2023. "Natural resources volatility and causal associations for BRICS countries: Evidence from Covid-19 data," Resources Policy, Elsevier, vol. 80(C).
    25. Conlon, Thomas & Corbet, Shaen & McGee, Richard J., 2020. "Are cryptocurrencies a safe haven for equity markets? An international perspective from the COVID-19 pandemic," Research in International Business and Finance, Elsevier, vol. 54(C).
    26. Sun, Li & Wang, Yang, 2021. "Global economic performance and natural resources commodity prices volatility: Evidence from pre and post COVID-19 era," Resources Policy, Elsevier, vol. 74(C).
    27. Sharif, Arshian & Aloui, Chaker & Yarovaya, Larisa, 2020. "COVID-19 pandemic, oil prices, stock market, geopolitical risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet-based approach," International Review of Financial Analysis, Elsevier, vol. 70(C).
    28. Colin B. Gabler & Omar S. Itani & Raj Agnihotri, 2023. "Activating Corporate Environmental Ethics on the Frontline: A Natural Resource-Based View," Journal of Business Ethics, Springer, vol. 186(1), pages 63-86, August.
    29. Li, Xiaolong & Ozturk, Ilhan & Ullah, Sana & Andlib, Zubaria & Hafeez, Muhammad, 2022. "Can top-pollutant economies shift some burden through insurance sector development for sustainable development?," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 326-336.
    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. Sun, Li & Wang, Yang, 2021. "Global economic performance and natural resources commodity prices volatility: Evidence from pre and post COVID-19 era," Resources Policy, Elsevier, vol. 74(C).
    2. Yating, Yang & Mughal, Nafeesa & Wen, Jun & Thi Ngan, Truong & Ramirez-Asis, Edwin & Maneengam, Apichit, 2022. "Economic performance and natural resources commodity prices volatility: Evidence from global data," Resources Policy, Elsevier, vol. 78(C).
    3. Zhang, Yichi & Wang, Qiao & Tian, Tian & Yang, Yuan, 2022. "Volatility in natural resources, economic performance, and public administration quality: Evidence from COVID-19," Resources Policy, Elsevier, vol. 76(C).
    4. Cao, Yanyan & Xiang, Shihui, 2023. "Natural resources volatility and causal associations for BRICS countries: Evidence from Covid-19 data," Resources Policy, Elsevier, vol. 80(C).
    5. Zhang, Ru & Zhao, Wenhao & Wang, Yong, 2024. "Is there a relationship between economic growth and natural resource commodity price volatility? Evidence from China," Resources Policy, Elsevier, vol. 88(C).
    6. Zhou, Shuai & Qian, Yudan & Farmanesh, Panteha, 2022. "The economic cost of environmental laws: Volatility transmission mechanism and remedies," Resources Policy, Elsevier, vol. 79(C).
    7. Liu, Haiying & Saleem, Muhammad Mansoor & Al-Faryan, Mamdouh Abdulaziz Saleh & Khan, Irfan & Zafar, Muhammad Wasif, 2022. "Impact of governance and globalization on natural resources volatility: The role of financial development in the Middle East North Africa countries," Resources Policy, Elsevier, vol. 78(C).
    8. Zhou, Haonan & Li, Dongxin & Mustafa, Faisal & Altuntaş, Mehmet, 2022. "Natural resources volatility and South Asian economies: Evaluating the role of COVID-19," Resources Policy, Elsevier, vol. 75(C).
    9. Arvian Triantoro & Muhammad Zaheer Akhtar & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & Abdul Wahab Pathath & Muhamad Amar Mahmad & Kamil Sertoglu, 2023. "Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 34-50, March.
    10. Guo, Shanwen & Wang, Qibin & Hordofa, Tolassa Temesgen & Kaur, Prabjot & Nguyen, Ngoc Quynh & Maneengam, Apichit, 2022. "Does COVID-19 pandemic cause natural resources commodity prices volatility? Empirical evidence from China," Resources Policy, Elsevier, vol. 77(C).
    11. Feng, Meihong & Zou, Donghang & Hafeez, Muhammad, 2024. "Mineral resource volatility and green growth: The role of technological development, environmental policy stringency, and trade openness," Resources Policy, Elsevier, vol. 89(C).
    12. Wen, Jun & Mughal, Nafeesa & Kashif, Maryam & Jain, Vipin & Ramos Meza, Carlos Samuel & Cong, Phan The, 2022. "Volatility in natural resources prices and economic performance: Evidence from BRICS economies," Resources Policy, Elsevier, vol. 75(C).
    13. Niculaescu, Corina E. & Sangiorgi, Ivan & Bell, Adrian R., 2023. "Does personal experience with COVID-19 impact investment decisions? Evidence from a survey of US retail investors," International Review of Financial Analysis, Elsevier, vol. 88(C).
    14. Serdar Neslihanoglu, 2021. "Linearity extensions of the market model: a case of the top 10 cryptocurrency prices during the pre-COVID-19 and COVID-19 periods," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-27, December.
    15. Kumeka, Terver Theophilus & Uzoma-Nwosu, Damian Chidozie & David-Wayas, Maria Onyinye, 2022. "The effects of COVID-19 on the interrelationship among oil prices, stock prices and exchange rates in selected oil exporting economies," Resources Policy, Elsevier, vol. 77(C).
    16. Liu, Qiang & Zhao, Zhongwei & Liu, Yiran & He, Yao, 2022. "Natural resources commodity prices volatility, economic performance and environment: Evaluating the role of oil rents," Resources Policy, Elsevier, vol. 76(C).
    17. Yarovaya, Larisa & Brzeszczyński, Janusz & Goodell, John W. & Lucey, Brian & Lau, Chi Keung Marco, 2022. "Rethinking financial contagion: Information transmission mechanism during the COVID-19 pandemic," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 79(C).
    18. Goodell, John W. & Goutte, Stephane, 2021. "Diversifying equity with cryptocurrencies during COVID-19," International Review of Financial Analysis, Elsevier, vol. 76(C).
    19. Demir, Ender & Danisman, Gamze Ozturk, 2021. "Banking sector reactions to COVID-19: The role of bank-specific factors and government policy responses," Research in International Business and Finance, Elsevier, vol. 58(C).
    20. Le, Thai-Ha & Boubaker, Sabri & Bui, Manh Tien & Park, Donghyun, 2023. "On the volatility of WTI crude oil prices: A time-varying approach with stochastic volatility," Energy Economics, Elsevier, vol. 117(C).

    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:eee:jrpoli:v:87:y:2023:i:pb:s0301420723010000. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    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.