COVID-19 social distancing measures and economic growth: Distinguishing short- and long-term effects

Journal article

Ashraf, B. and Goodell, John W. (2022). COVID-19 social distancing measures and economic growth: Distinguishing short- and long-term effects. Finance Research Letters. 47, p. 102639. https://doi.org/10.1016/j.frl.2021.102639
AuthorsAshraf, B. and Goodell, John W.
Abstract

Social distancing policies have been criticized for their adverse effect on economies. However, we evidence that while they have a short-run adverse effect, they also have a long-run recovery effect on economic growth. Utilizing quarterly gross domestic product (GDP) growth rate data from OECD member states, we find that the medium-term recovery effect of stringent social distancing policies on economic growth is three times higher the short-term adverse effect. We additionally investigate social distancing measures with sub-components of GDP, as well as the conditioning roles of institutional factors.

KeywordsCovid-19; pandemic; social distancing polices; GDP growth
Year2022
JournalFinance Research Letters
Journal citation47, p. 102639
PublisherElsevier
ISSN1544-6131
Digital Object Identifier (DOI)https://doi.org/10.1016/j.frl.2021.102639
Web address (URL)https://www.sciencedirect.com/science/article/pii/S1544612321005742
Publication dates
Online21 Dec 2021
Publication process dates
Accepted19 Dec 2021
Deposited26 Oct 2023
Accepted author manuscript
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Open
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