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

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.