Effects of COVID-19 on Global Financial Markets: Evidence from Qualitative Research for Developed and Developing Economies

Zhao, Linhai and Rasoulinezhad, Ehsan and Sarker, Tapan ORCID: https://orcid.org/0000-0002-0682-2940 and Taghizadeh‑Hesary, Farhad (2022) Effects of COVID-19 on Global Financial Markets: Evidence from Qualitative Research for Developed and Developing Economies. The European Journal of Development Research. pp. 1-19. ISSN 0957-8811


Abstract

The research aims to prioritize the pandemic’s impact on the financial markets of developed and developing economies using a multi-criteria decision-making approach. The results revealed that COVID-19’s pandemic effects on financial markets differ between developed and developing nations. COVID-19 pandemic affects developed countries’ financial markets more through supply reduction, demand reduction, and economic instability. Regarding developing nations, confidence and expectations, changes in consumption patterns, and the bandwagon effect are the three most significant impacts of COVID-19 pandemic on financial markets. The best decisions to lower the effect of COVID-19 pandemic on developed nations’ financial markets are the declaration of the stimulus package and support of small-and-medium-sized enterprises. Contrastingly, in developing countries, support for vulnerable households and declaration of the stimulus package are the best decisions to combat COVID-19’s negative impact on their financial markets. As practical policy implications for lowering COVID-19’s negative impact on financial markets, the promotion of new financing instruments, reconstruction of the relationship between public and private sectors, and support of vulnerable households and enterprises are highly recommended.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Files associated with this item cannot be displayed due to copyright restrictions.
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 20 Apr 2022 22:52
Last Modified: 27 Sep 2022 00:45
Uncontrolled Keywords: Analytic hierarchy process; COVID-19; External shock; Global financial markets; Sustainable development goals
Fields of Research (2020): 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350204 Financial institutions (incl. banking)
Socio-Economic Objectives (2020): 11 COMMERCIAL SERVICES AND TOURISM > 1102 Financial services > 110299 Financial services not elsewhere classified
Identification Number or DOI: https://doi.org/10.1057/s41287-021-00494-x
URI: http://eprints.usq.edu.au/id/eprint/47562

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