COVID-19 and cross-border contagion: Trade and financial flows

Louati, Achraf; Zakaria, Firano; adib, Fatine Filali

doi:10.1016/j.resglo.2022.100082

Cited by 9 publications

(4 citation statements)

References 46 publications

(39 reference statements)

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“…This influence is called a contagion effect, a theory explaining that a crisis occurring in a region or country can spread its effect to another country on a domestic or international scale (Dornbusch et al, 2000). During the crisis of COVID-19, the systemic risk resulting from the contagion effect experienced an increase in the financial sector (Louati et al, 2022)…”

Section: Resultsmentioning

confidence: 99%

Islamic and Conventional Stocks’ Volatility: Evidence from the Three Waves of Covid-19 Pandemic

Alghifary¹,

Kadji²,

Hafizah³

2023

IJIEF

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This study aims to compare the performance of Islamic and conventional stocks’ performance amid a crisis. The performance is measured by analyzing the volatility of the Indonesian Sharia Stock Index (ISSI) and the Composite Stock Price Index (IHSG) IHSG during the Covid-19 pandemic. Based on the results of the different tests using the paired t-test and Wilcoxon rank test methods, it was concluded that the ISSI and IHSG experienced significant changes before and after discovering the first case of Covid-19 in Indonesia. Significant changes in both values are also found when the Delta variance spreads. Meanwhile, when the third wave occurred due to the presence of the Omicron variant, ISSI and IHSG were able to move more stable and did not experience significant shocks. Then, the estimation results of the GARCH model conclude that both Islamic stocks and conventional stocks have an immense volatility power with an identical value of 0.94 or close to 1. The volatility is also significantly influenced by the previous volatility and the squared error representing other previous events outside the model. The volatility that occurs in Islamic and conventional stocks is not much different, even though both stocks have different characters in the ratio of debt and income. Fundamental factors also cause this high volatility in the form of shocks in several macroeconomic variables, including the rupiah exchange rate, gold prices, and world oil prices. In addition, the contagion effect that occurred during the Covid-19 crisis also contributed to the spread of systemic risk in global stock indexes on stock volatility in Indonesia

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Section: Resultsmentioning

confidence: 99%

Islamic and Conventional Stocks’ Volatility: Evidence from the Three Waves of Covid-19 Pandemic

Alghifary¹,

Kadji²,

Hafizah³

2023

IJIEF

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“…There were only a limited number of studies that used collected data [12,13]. Consequently, there is a call to conduct more studies that actually use econometric models and real data rather than simulations [14,15]. It is also necessary to investigate the impact of the COVID-19…”

Section: Introductionmentioning

confidence: 99%

Insights about the Effects of COVID-19 on International Trade during the Main Pandemic Years in Romania and Poland

Tudorache

Nicolescu

2023

Sustainability

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The COVID-19 crisis disrupted the economic life of the entire world and caused various disturbances at different levels in economies and societies. Consequently, the study of the economic impact of the health crisis became necessary to identify the influences that the health crisis had on numerous activities, including economic ones. There are calls for more studies to be conducted about the effects of COVID-19 at different levels so that lessons can be learned. The present paper answers these calls and focuses on the analysis of the impact of the COVID-19 crisis on international trade at the country level by investigating two European countries, Romania and Poland. First, it analyzes the macro-level context of the two countries during the COVID-19 pandemic. Then, a regression methodology is employed to measure the impact of the COVID-19 burden (which includes the number of cases and the number of deaths related to COVID-19) on the export and import flows in Romania and Poland. The investigation refers to the first two years of the COVID-19 pandemic, 2020–2021, which were the most significant. The results of the regression analysis showed that international trade was affected by the COVID-19 burden in the two countries, but the influences were different in the two countries. Exports and imports in Poland were more affected by COVID-19 than exports and imports in Romania. COVID-19 also had a higher impact on the import than the export flows in both countries during the period considered. The negative assumed relationships between COVID-19 burden and international trade flows were not verified in these specific country cases. This paper provides more evidence about the economic impact of the COVID-19 crisis, contributing to a better understanding of the economic effects of health crises in general.

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“…The Coronavirus disease has led to disruptions in supply chains, a significant drop in demand for many industries and has impacted the stock market. Unemployment has also reached record levels [3].…”

Section: Introductionmentioning

confidence: 99%

The Shock of COVID-19 Pandemic on the Moroccan Exchange Rate Dirham/Euro

Bouasabah

2022

Front. Appl. Math. Stat.

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COVID-19 and cross-border contagion: Trade and financial flows

Cited by 9 publications

References 46 publications

Islamic and Conventional Stocks’ Volatility: Evidence from the Three Waves of Covid-19 Pandemic

Islamic and Conventional Stocks’ Volatility: Evidence from the Three Waves of Covid-19 Pandemic

Insights about the Effects of COVID-19 on International Trade during the Main Pandemic Years in Romania and Poland

The Shock of COVID-19 Pandemic on the Moroccan Exchange Rate Dirham/Euro

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