Economic Support Policies Research Articles

Private economic support policies, enterprise financialization, and productivity

This study examined panel data of privately listed companies in China from 2012 to 2022 for empirical analysis. Results indicate that enterprise financialization and economic policies supporting private enterprises strengthen production efficiency. Economic support policies had a heterogeneous impact on production efficiency at different lifecycle stages of the enterprises in the study sample. Assuming that other conditions remain unchanged, private economic support can indirectly increase enterprises’ production efficiency by enhancing R&D investment, thereby exerting a mediating effect.

COVID-19 policy responses, social norms, and behavior change in MENA

ABSTRACT Inducing behavior change is a missing factor in the face of viral threats. We provide evidence from a natural experiment in 2020 on the effects of containment, closure, and economic policy responses to COVID-19 on change in human mobility behavior in the Middle East and North Africa (MENA) region and worldwide. We also examine how social norms, namely risk taking and patience, and institutional trust, could explain the heterogenous effects of policy responses on behavior change. Our results show that the stringency of containment and closure policies decreased human mobility in MENA and worldwide. Risk-averse populations and populations with low-time preference were more likely to pre act and lower their mobility independent of containment and closure policies. The effectiveness of risk communication in promoting positive mobility change increased by the level of institutional trust. Specifically in MENA, populations were less responsive to the actual disease risk and the public perception of that risk. Familiarity with COVID-19 induced negative behavior change among impatient populations. Economic support policies promoted strong positive mobility change among low-risk and high-time preference populations. Income support seems to be the effective economic policy response in low-income countries and debt relief the effective one in higher-income countries.

Sustainable Development of Ethnic Minority Immigrants: A Comprehensive Review of Concepts, Challenges, and Strategies

This comprehensive review explores the sustainable development of ethnic minority immigrants, a topic of increasing global importance in the context of accelerating migration trends. The study employs a systematic literature review methodology, analyzing over 30 recent articles from diverse disciplines including sociology, ethnology, economics, and geography. It investigates the conceptual framework of sustainable development for minority immigrants, encompassing economic, social, and cultural dimensions. The paper examines current challenges faced by these communities, including economic hardships, social integration difficulties, and cultural conflicts. Furthermore, it identifies key influencing factors such as economic opportunities, social and cultural dynamics, policy environments, and natural settings. The research highlights the complex interplay of these factors and their mechanisms in shaping the sustainable development of minority immigrant groups. Based on this analysis, the study proposes multifaceted strategies to promote sustainable development, emphasizing the need for cultural and educational exchange, economic support policies, and social integration initiatives. This review contributes to the growing body of literature on minority immigration and provides valuable insights for policymakers and researchers alike, underlining the importance of a holistic approach to address this critical global issue.

Government’s responses and performance of stock markets during COVID-19: Evidence from ASEAN stock markets

This study aims to investigate the effects of government interventions on stock market performance of six countries within the ASEAN region that experienced the greatest impact during the COVID-19 pandemic in two aspects: stock returns and stock volatilities. The paper uses government response index and its components, including stringency index, containment and health index and economic support index as proxies for government actions. The paper first applies the GARCH(1,1) model to extract the volatilities of the studied stock markets. Subsequently, a panel regression model with fixed random effect is adopted to analyze how the performance of stock markets is influenced by government policy responses. The empirical results suggest that government’s interventions exert positive, significant effect on the stock returns of ASEAN markets. Additionally, the stock markets are more volatile under the implementation of restriction policies and containment and health policies, whereas the economic support policies are associated with decreased volatilities. The overall effect of government response policies also boosts the volatility of ASEAN stock markets. Our findings provide essential and reliable evidence for policymakers and stakeholders to alleviate the profound impact of the widespread COVID-19 outbreak.

COVID-19 and Non-Performing Loans in Europe

This study investigates the impact of COVID-19 on the non-performing loans (NPLs) in Europe, distinguishing by European subregion, country-level prosperity, NPL type, and NPL economic sector. We utilized panel data analysis covering the period 2015Q1–2021Q4 while controlling for macro, bank-specific, and regulatory indicators. We derived that the COVID-19 deaths and the strictness of lockdown measures positively affected the NPLs, while the economic support policies exerted a negative effect. Profitable, capitalized banks fared better. The strictness of lockdown measures hindered the ability of SMEs to repay their loans, increasing their NPLs. Sectors involving physical work-related activities also experienced an increase in their NPLs. We also deduced that bank securitization and national culture significantly contributed to NPL reduction.

Elections and policies: Evidence from the Covid pandemic

AbstractThis paper explores the impact of political elections on public policies during the Covid pandemic, distinguishing between economic (supportive) and noneconomic (restrictive) policies in a panel of countries that held political elections during 3 years of pandemic, 2020–2022. An event study, controlling for the evolution of the pandemic in terms of Covid cases and deaths, as well as country and time fixed effects, reveals significant adjustments in the Covid‐related restrictive, lockdown‐type, policies but not in the Covid‐related economic support policies before political elections during the first half of the pandemic. The pre‐election policy adjustments included a gradual easing of the restrictions before elections and were driven by the changes in the restrictions that were more likely to directly affect the electorate, such as the restrictions on workplace closing, gatherings, and public events. The presence of the pre‐election restrictions adjustment is conditional on the economic and political characteristics of the country, such as the state of democracy, the degree of political competition, the overall restrictions stringency, and the income level.

Financial worry and government responses to the COVID-19 pandemic in 88 Countries: Did public confidence in National Governments matter?

During the COVID-19 pandemic, governments implemented various measures to control the spread of the virus, enhance healthcare systems, and mitigate the economic impact of these actions. In this study, we investigate how government responses to COVID-19, in terms of stringency and economic support, affected individuals' financial worries in 88 economies. We also investigate how the relationship between these variables was affected by the public’s confidence in the government. Our results suggest that greater stringency was associated with increased financial worry, irrespective of public trust in the government. Meanwhile, the impact of economic support policies varied with the level of public trust in the government. In countries where citizens reported high levels of confidence in their government, economic support to households helped to alleviate financial worry. In countries with low confidence levels, the support policies had no statistically significant impact.

State COVID-19 Policies and Drug Overdose Mortality Among Working-Age Adults in the United States, 2020.

Objectives. To identify relationships between US states' COVID-19 in-person activity limitation and economic support policies and drug overdose deaths among working-age adults in 2020. Methods. We used county-level data on 140 435 drug overdoses among adults aged 25 to 64 years during January 2019 to December 2020 from the National Vital Statistics System and data on states' COVID-19 policies from the Oxford COVID-19 Government Response Tracker to assess US trends in overdose deaths by sex in 3138 counties. Results. Policies limiting in-person activities significantly increased, whereas economic support policies significantly decreased, overdose rates. A 1-unit increase in policies restricting activities predicted a 15% average monthly increase in overdose rates for men (incident rate ratio [IRR] = 1.15; 95% confidence interval [CI] = 1.09, 1.20) and a 14% increase for women (IRR = 1.14; 95% CI = 1.09, 1.20). A 1-unit increase in economic support policies predicted a 3% average monthly decrease for men (IRR = 0.97; 95% CI = 0.95, 1.00) and a 4% decrease for women (IRR = 0.96; 95% CI = 0.93, 0.99). All states' policy combinations are predicted to have increased drug-poisoning mortality. Conclusions. The economic supports that states enacted were insufficient to fully mitigate the adverse relationship between activity limitations and drug overdoses. (Am J Public Health. 2024;114(7):714-722. https://doi.org/10.2105/AJPH.2024.307621).

웰에이징을 위한 경제교육의 필요성 연구

This study is a descriptive study to create and implement an economic education program to solve the problem of economic poverty among the elderly. Data collection was conducted through Gallup Korea, and the total number of respondents was 37 education experts. The collected data were analyzed as follows. The general characteristics of the subjects were analyzed in terms of frequency and percentage, importance and degree of implementation of economic program operation, importance and degree of knowledge of economic education programs, and importance and performance of work according to period of employment was analyzed by means and standard deviation. The regression analysis was conducted on the importance and implementation of economic education programs according to period of employment, importance and level of knowledge of economic education programs, and importance and performance of work according to period of employment. In order to examine educators' perceptions of each area related to economic education, IPA (importance-performance analysis) was conducted on the importance and performance. In consequence, 'program plan establishment' was found to be a main improvement area. As a result of analyzing the importance and knowledge of each item on the contents of economic education, 'economic life after retirement' was found to be a competitive advantage area, and 'government economic support policy' is important, but the degree of knowledge about it is only at the average level, so improvement is required.

인구소멸 위기에 대응하기 위한 헌법적 소고가족공동체의 다양성과 아동의 기본권을 중심으로

In the face of an unprecedented total fertility rate of 0.78, numerous policies have been proposed. While short-term economic support policies may contribute to an increase in birth rates, their effectiveness is constrained by economic factors such as recession, leading to uncertainty about when increased costs might halt the rising birth rate. Population shocks can result in economic and security crises, prompting individuals to avoid childbirth or seek opportunities abroad. Consequently, adopting a distinct long-term plan and constitutional efforts to establish and stabilize a minimum total fertility rate unaffected by external factors is imperative. Approaching the population issue from a constitutional values perspective, the solution begins with understanding the future parent generation's views on marriage and childbirth. To address the national challenge of population decline, the focus is on diversifying the family community, the fundamental unit of the country, ensuring the basic rights of children as family members, and particularly, providing national protection for children born outside of marriage.
 To achieve this, the paper first emphasizes the need to redefine the concept of family for diversified family structures, utilizing a structural analysis of Article 36 of the Constitution. It then presents the current situation in countries that have implemented non-marriage registration systems. Second, the paper introduces the importance of ensuring the basic rights of children as family members. To lay the foundation for a happy childhood and adolescence, it aims to establish basic rights for children and eliminate prejudices and discrimination against non-marital births through new constitutional protection provisions. Finally, the paper suggests a direction for the structure of constitutional amendments if undertaken.

난민으로 본 제주 섬의 사회경제 변화

Through out our history, Jeju has long been neglected as an alienated borderland. The paradoxical occurrence of residents fleeing to the mainland or affiliated islands, despite the establishment of a new dynasty advocating a strong centralized regime that reclaimed autonomy, was attributed to issues such as double exploitation. In this context, before the emergence of the 2018 Yemeni refugee crisis, Jeju Island had already experienced the refugee issue within our society. The influx of “refugees” to Jeju during the restructuring process of our social system by neoliberalism following the 1990s financial crisis can be understood in a similar context. This study examines the refugee issue and the socioeconomic changes in Jeju Island, focusing on the themes of border islands, mutual economic development, and peaceful settlement. Jeju, being the oldest border island in our country, holds a rich history of mutual economic development with the mainland. Additionally, the unresolved Jeju 4.3 incident is associated with the concept of “Peace” as a potential solution. Despite facing a situation where Jeju lacks support from the mainland, it paradoxically possesses geopolitical and historical foundations that attract international attention. However, sustaining an economy without mainland support or relations is practically impossible, and unilateral policy approaches from the mainland do not yield the expected outcomes. Consequently, economic support policies for border islands and peace settlement policies should prioritize effective support and agreements based on historical context.

A study on the efficiency of economic support policies in response to COVID-19

ABSTRACT This study evaluates the efficiency of economic support policies implemented by OECD countries during the COVID-19 pandemic from January 2020 to December 2021, using Data Envelopment Analysis (DEA). Distinguished from prior research, this study comprehensively considers both economic policy and public health perspectives. The results of this analysis can be summarized as follows: Firstly, government effectiveness was found to positively influence policy efficiency, underscoring the critical role of citizens’ trust in government policy execution in shaping policy outcomes. Secondly, nations with a high Universal Health Coverage (UHC) Service Index exhibited lower efficiency. Further examination of this finding revealed that countries with superior healthcare coverage experienced fewer COVID-19-related deaths, albeit with less robust economic performance. In these countries, despite the high quality of medical coverage and economic responses, the outcomes did not proportionately align with their efforts. Drawing from these insights, we present policy recommendations to enhance the effectiveness of government responses.

The COVID-19 pandemics and import demand elasticities: evidence from China’s customs data

We study China’s import demand elasticities using HS 8-digit customs data on China’s provincial imports during January 2019 to March 2021. It is found that both direct bilateral exchange rate elasticity and third-country exchange rate elasticity are affected by (1) policies that these Asian economies adopted to alleviate the adverse impacts of the COVID-19 pandemic and (2) the degree of concentration of exporters exporting a certain product to a certain Chinese provincial market. It is found that economic support policies will lower the bilateral exchange rate elasticity of trade flows, or even alter the sign of the bilateral exchange rate elasticity of China’s imports. Besides, the economic support policies can alleviate the pressure of foreign competition on exporters and make the exporters more resilient to the impacts of foreign competitors’ exchange rate depreciation. In contrast, the degree of market concentration of exporters in a certain provincial market affects the exchange rate and the third-country exchange rate elasticity differently. A higher market concentration lowers the bilateral exchange rate elasticity of trade flows but magnifies the impact of foreign competitors’ currency depreciation on exporters. These results are robust to alternative modes of trade, regional heterogeneity, product heterogeneity, various measures of policy responses to the pandemic, and alternative database.

Short- and long-term food insecurity and policy responses in pandemics: Panel data evidence from COVID-19 in low- and middle-income countries

We leverage unique panel household phone survey data collected by the World Food Programme (WFP) several months before and 3 years into the COVID-19 pandemic in nine low-and middle-income countries to examine whether the COVID-19 period was associated with increases in food insecurity. We also combine this data with data from the Oxford COVID-19 response tracker to examine how lockdown policies and economic support policies to households have affected food consumption.Our household level panel models show that the COVID-19 period was associated with increases in the proportion of people with insufficient food consumption in seven countries (Niger, Mali, Burkina Faso, Mozambique, Guatemala, Syria, and Yemen) but not in the other two (Cameroon and El-Salvador). Three years into the pandemic, most of the countries have not recovered from the initial negative impacts that were observed within the first year. The use of coping strategies, such as relying on less preferred food or borrowing to buy food, increased in countries where there was an increase in the proportion of people with insufficient food. Country fixed effect models show that strictness of lockdowns was associated with reductions in food consumption while economic support for COVID-19 to households was associated with improvements in food consumption. We conclude that food security has not recovered 3 years after the onset of COVID-19 and that lockdown policies and other associated generalized effects of the pandemic may be key drivers of food insecurity during pandemics. Household own coping strategies may not be sufficient to protect households from deterioration in food insecurity, but economic support interventions, such as cash transfers, may minimize these deteriorations.

A Study on the Influence of Economic Policy on Fertility Reduction and the Countermeasures Based on China and Foreign Policy

It has been confirmed that China's fertility rate has fallen below the fifth lowest globally and has fully entered the low fertility trap. There is an urgent need to increase the fertility rate. This paper mainly studies the causes of the gradual decline in fertility in China in recent years. It compares the subsidy measures taken by various countries to cope with the low fertility rate. It compares the living cost and economic policy system in China to analyze how China should raise the fertility rate. Through the analysis and summary of the literature, it is found that the reasons for the decrease in China's fertility rate year by year are that the explicit and implicit costs of birth and raising are too high, and the allocation of educational resources is unfair, resulting in low social identity and low happiness. With the gradual decrease of the fertility rate, the population structure changes, and the risk increases, making it difficult for the fertility rate to return to normal. Therefore, China should follow the Nordic countries' policies on parenting costs and social welfare, favor multi-child families, reduce parenting costs after childbirth, improve family happiness, and introduce economic support policies for child-rearing. At the same time, China should avoid the policy risk of "only giving money" and avoid the ineffective phenomenon of increasing welfare but declining fertility rates instead of rising.

Were public interventions relevant for containing the covid-19 pandemic in Brazil in 2020?

Flattening the curve was the most promoted public health strategy worldwide, during the pandemic, to slow down the spread of the SARS-CoV-2 virus, and, consequently, to avoid overloading the healthcare systems. In Brazil, a relative success of public policies was evidenced. However, the association between public policies and the "flatten the curve" objectives remain unclear, as well as the association of different policies to reach this aim. This study aims to verify if the adoption of different public policies was associated with the flattening of the infection and death curves by covid-19 first wave in 2020. Data from the Sistema de Informação da Vigilância Epidemiológica da Gripe (Influenza Epidemiological Surveillance Information System - SIVEP-Gripe) and the Instituto Brasileiro de Geografia e Estatística (Brazilian Institute of Geography and Statistics - IBGE) were used to compute standardized incidence and mortality rates. The Oxford Covid-19 Government Response Tracker (OxCGRT) was used to obtain information about governmental responses related to the mitigation of pandemic effects, and the Human Development Index (HDI) was used as a measure of socioeconomic status. A non-linear least-square method was used to estimate parameters of the five-parameter sigmoidal curve, obtaining the time to reach the peak and the incremental rate of the curves. Additionally, ordinary least-square linear models were used to assess the correlation between the curves and the public policies adopted. Out of 51 municipalities, 261,326 patients had SARS-CoV-2 infection. Stringency Index was associated with reducing covid-19 incremental incidence and death rates,in addition to delaying the time to reach the peak of both pandemic curves. Considering both parameters, economic support policies did not affect the incidence nor the mortality rate curves. The evidence highlighted the importance and effectiveness of social distancing policies during the first year of the pandemic in Brazil, flattening the curves of mortality and incidence rates. Other policies, such as those focused on economic support, were not effective in flattening the curves but met humanitarian and social outcomes.

The impact of government policy responses on airline stock return during the COVID-19 crisis

This study investigates the impact of government policies on the weekly stock returns of 73 global airline companies in 36 countries during the COVID-19 pandemic. Using panel data estimation techniques with country and week fixed effects, we find that the overall government policies, containment and health policies, and stringency policies increase airline stock returns. Economic support policies do not significantly impact the returns. Containment and health policies mitigate the negative effect of the pandemic on airline stock returns, whereas economic support policies strengthen the adverse effect. The government interventions' impact on airline stock returns is heterogeneous based on the airlines' headquarters but not on their ownership structures and business operations. Our empirical findings provide salient insights for protecting airline companies by reflecting on which government policy responses are effective and how governments should invest and prioritize policies. The results also present practical implications for airline managers, investors, and policymakers concerned with the current pandemic and future crises.

Investors’ risk aversion and government policy responses to the COVID-19 pandemic

ABSTRACT Do government policies during the COVID-19 pandemic affect investors’ risk aversion, as proxied by the variance premium? To answer this question, this study examines data regarding government responses from thirteen countries. The empirical analysis indicates that government interventions were not able to substantially reduce variance risk premium in international equity markets. The results also show that economic support policies, containment, and closure regulations, and health system interventions all played a significant role in shaping equity variance risk price.

Effect of COVID-19 on hotel performance: role of government

PurposeThe study has two objectives, first, to examine the effect of COVID-19 deaths and corruption on the government's policy responses, and second, to investigate the effect of COVID-19, corruption and government response on hotel performance, using the developmental system's framework of resilience theory.Design/methodology/approachThe study utilizes hotel data from ten countries collected from 1st March 2020 to 28th February 2021. The data are analyzed using the panel regression analysis in E-views.FindingsThe study confirms that government policies direct impact the hotel performance. Specifically, economic support policies have a positive effect on hotel performance, while COVID-19 deaths and restrictions have a negative impact on hotels. The study also found a strong association between corruption and the level of restrictions that governments choose to implement. Therefore, for effective recovery, governments must be mindful of the context in which businesses operate and the effect of their policies on the hotel industry.Practical implicationsThe strong correlation between COVID-19 deaths and RevPAR highlights the significance of understanding and addressing customers' risk perception to enhance the resilience of the hotel industry. The findings emphasize the importance of collaboration between the hotel industry and the government for effective crisis management and policymaking.Originality/valueThis study empirically examines how various policy responses and crisis levels impact hotel performance. It sheds light on why countries respond to crises differently and the effects of different policy responses on the hotel industry. The study has many implications for the industry stakeholders and policymakers.

Government Interventions and Sovereign Bond Market Volatility during COVID-19: A Quantile Analysis

We test the interaction between governments’ COVID-19 interventions, COVID-19-induced uncertainty, and the volatility of sovereign bonds. Different from previous literature, we investigate the asymmetric response of bond market volatility to both governmental interventions and COVID-19-induced uncertainty. With a focus on the first waves of the pandemic and using a panel quantile approach and a comprehensive dataset of 31 countries worldwide, we document that containment and closure policies tend to amplify volatility. Furthermore, the price variability is augmented by the spread of the pandemic itself. On the contrary, economic support policies have a substantial stabilizing effect on bond price fluctuations. Both phenomena are not subsumed by additional control variables and are robust to multiple considerations. Our findings may serve financial market participants in their risk management decisions, as well as policymakers to better shape their preparedness for future pandemics.