The association of COVID-19 nexus on China's economy: A financial crisis or a health crisis?

ABSTRACT: This paper analyses the interaction between the novel coronavirus pandemic (COVID-19), unemployment rate, stock market, consumer confidence index (CCI), and economic policy uncertainty (EPU) index in China within a time-frequency framework. We compare the changes in economic indicators during the global financial crisis (GFC) and study the different impacts of the two events on China's economy. An unprecedented impact of COVID-19 shocks on the unemployment rate, CCI, EPU index, and stock market volatility over the low frequency bands is uncovered by applying the coherence wavelet method to China monthly data. The COVID-19 effect on the stock market volatility and the EPU index is substantially higher than on the unemployment rate and the CCI. On the contrary, the GFC's impact on the unempl

SUBMITTER: Hu C 

PROVIDER: S-EPMC9451089 | biostudies-literature | 2022

REPOSITORIES: biostudies-literature