Evaluating economic recovery by measuring the COVID-19 spillover impact on business practices: evidence from Asian markets intermediaries

• Published in: Economic change and restructuring Vol. 56; no. 3; pp. 1629 - 1650
• Main Authors: Wang, Jianhe, Cui, Mengxing, Chang, Lei
• Format: Journal Article
• Language: English
• Published: New York Springer US 01-06-2023; Springer Nature B.V
• Subjects: Business; COVID-19; Development Economics; Economic Growth; Economic Policy; Economic recovery; Economic stabilization; Economics; Economics and Finance; Energy industry; Expenditures; Financial market; Global economy; Green economy; International Economics; Long term; Macroeconomics/Monetary Economics//Financial Economics; Markets; Monetary policy; Pandemics; Panel data; Political Economy/Economic Systems; Spillover effect; Stock exchanges; Uncertainty; Asia; Business practices; Monetary policy; Financial markets; Policy rates; Green economic recovery
• ISSN: 1573-9414; 1574-0277
• DOI: 10.1007/s10644-023-09482-z

The COVID-19 outbreak significantly affected the global economy and energy markets. To mitigate the shock, maintain financial market stability, and encourage economic recovery, this study investigates the influence of post-COVID-19 on monetary policy transmission to business practices and financial market indicators for green economic recovery. We utilised 37 Asian markets’ panel data from 1 January 2020, through 30 December 2020. The empirical findings demonstrate that the pandemic’s emergence impeded monetary policy transmission, business practices, and financial markets. Our empirical contribution is to examine the size, sectoral allocation, and implementation options of three leading countries’ (China, Japan, and Thailand) green recovery spending plans, which range significantly. However, this effect mainly affects the medium-and-long-term effects, and short-term spillover effects are primarily unaffected by Asian monetary policy uncertainty. Our findings have significant implications for green economic recovery among market players and regulators in the Asian market.