Impact of COVID-19 & SARS on countries GDP & stock market returns
LE3 .A278 2021
Bachelor of Business Administration
COVID-19 has demonstrated the difficulty the world has in dealing with global crises. This pandemic in particular has caused uncertainty in international markets with concerns generating from differing economic circumstances. This virus has caused global panic, and this panic is evident in global markets in the past weeks as stakeholders rethink their investments. However, with the world’ s population continuing to rise, the likelihood of more potential pandemics rises subsequently. This paper investigates past global health crises and the extent these consequences had on global economies. In particular, I used the ThomsonReuters database to collect economic information surrounding the SARS Outbreak (2002-2004)and the most recent pandemic ; the COVID-19 outbreak (2019 –Present). The countries that were evaluated were the United States, Canada, the United Kingdom, Germany, Japan, Hong Kong, Australia, and South Africa. The variables of unemployment, CPI, bankruptcies, interest rates, and foreign exchange rates were used as independent variables to regress country GDP and stock market indices, along with dummy variables that represented the SARS epidemic and COVID-19 pandemic. The conclusion demonstrated that SARS was statistically significant towards GDP overall and that COVID-19 was economically significant within the overall sample and particularly within. Australia, Japan,and Hong Kong.This indicated that health crises have become a more significant economic event and may continue to worsen as a result of rising population density.
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