Home / Regular Issue / JST Vol. 29 (3) Sep. 2021 / JSSH-8137-2021

 

Exploring The Impact of Pandemic on Global Economy: Perspective from Literature Review

Van Ky Long Nguyen, Thi My Hanh Le, Thi Minh Chau Tran, Thi Thu Hien Le, Thi Ngoc Mai Duong, Thi Hien Le, Tien Son Nguyen and Nhu Hoa Vo

Pertanika Journal of Science & Technology, Volume 29, Issue 3, September 2021

DOI: https://doi.org/10.47836/pjssh.29.3.29

Keywords: COVID-19, economics, global economy, literature review, pandemic

Published on: 27 September 2021

The pandemic has caused several health issues and deaths and numerous severe devastations to the global economy. Due to the extreme impacts of the epidemics, it is crucial to investigate the pandemics and their pessimistically hidden influences to devise proper strategies. However, although this topic gains enormous recognition from scholars and researchers, there is still an inadequacy of a comprehensive literature review on the issues, and in-depth research on individual aspects of the world economy. Accordingly, the objective of this paper is to contribute a literature review that synthesises and evaluates prior research, to examine the current state of the pandemic impacts on the global economy, as well as become the requisite foundation for the practitioners to perceive how to respond to a pandemic in the future. A literature review is conducted, with 254 most relevant articles are analysed and classified based on the proposed framework. Thus, the findings of this study contribute diverse theoretical and practical insights concerning pandemics and the global economy. The results of this paper indicate the current status of the literature review and discover future research directions. Additionally, this paper proposes an integrated framework of the most influenced industries, followed by some emerging solutions to the most suffering sectors. Future research directions are further suggested based on the identified research gaps and the analysis results.

  • Acs, G., & Karpman, M. (2020). Employment, income, and unemployment insurance during the COVID-19 pandemic. Urban Institute. https://www.urban.org/research/publication/employment-income-and-unemployment-insurance-during-covid-19-pandemic

  • Ahlburg, D. A. (2020). Covid‐19 and UK universities. The Political Quarterly, 91(3), 649-654. https://doi.org/10.1111/1467-923X.12867

  • Akbar, Y. H., & Kisilowski, M. (2020). To bargain or not to bargain: Airlines, legitimacy and nonmarket strategy in a COVID-19 world. Journal of Air Transport Management, 88, 101867. https://doi.org/10.1016/j.jairtraman.2020.101867

  • Al-Samarrai, S., Gangwar, M., & Gala, P. (2020). The impact of the COVID-19 pandemic on education financing. World Bank. https://openknowledge.worldbank.org/handle/10986/33739

  • Ali, M., Alam, N., & Rizvi, S. A. R. (2020). Coronavirus (COVID-19) – An epidemic or pandemic for financial markets. Journal of Behavioral Experimental Finance, 27, 100341. https://doi.org/10.1016/j.jbef.2020.100341

  • Altavilla, C., Boucinha, M., & Peydró, J.-L. (2018). Monetary policy and bank profitability in a low interest rate environment. Economic Policy, 33(96), 531-586. https://doi.org/10.1093/epolic/eiy013

  • Ashraf, B. N. (2020). Economic impact of government interventions during the COVID-19 pandemic: International evidence from financial markets. Journal of Behavioral Experimental Finance, 27, 100371. https://doi.org/10.1016/j.jbef.2020.100371

  • Azimli, A. (2020). The impact of COVID-19 on the degree of dependence and structure of risk-return relationship: A quantile regression approach. Finance Research Letters, 36, 101648. https://doi.org/10.1016/j.frl.2020.101648

  • Baker, B. D., & Di Carlo, M. (2020). The coronavirus pandemic and K-12 education funding. Albert Shanker Institute.

  • Baker, B. D., Weber, M., & Atchison, D. (2020). Weathering the storm: School funding in the COVID-19 era. Phi Delta Kappan, 102(1), 8-13. https://doi.org/10.1177/0031721720956839

  • Baldwin, R., & Mauro, B. W. d. (2020). Economics in the Time of COVID-19. CEPR Press.

  • Barham, B., Bunker, S. G., & O’Hearn, D. (1994). States, firms, and raw materials: The world economy and ecology of aluminum. Univ of Wisconsin Press.

  • Barker, M., & Russell, J. (2020). Feeding the food insecure in Britain: Learning from the 2020 COVID-19 crisis. Food Security, 12(4), 865-870. https://doi.org/10.1007/s12571-020-01080-5

  • Bartik, A. W., Bertrand, M., Cullen, Z. B., Glaeser, E. L., Luca, M., & Stanton, C. T. (2020). How are small businesses adjusting to covid-19? Early evidence from a survey (No. w26989). National Bureau of Economic Research. http://doi.org/10.3386/w26989

  • Baum, T., & Hai, N. T. T. (2020). Hospitality, tourism, human rights and the impact of COVID-19. International Journal of Contemporary Hospitality Management, 32(7), 2397-2407. https://doi.org/10.1108/IJCHM-03-2020-0242

  • Bråthen, S., & Hoff, K. L. (2020). Economic impact assessment of regulatory changes: A case study of a proposed new ICAO standard for contaminated runways. Sustainability, 12(15), 5897. https://doi.org/10.3390/su12155897

  • Chetty, R., Friedman, J. N., Hendren, N., & Stepner, M. (2020). How did covid-19 and stabilization policies affect spending and employment? A new real-time economic tracker based on private sector data. National Bureau of Economic Research.

  • Copertari, L. F. (2016). Economy sectors participation index. International Review of Social Sciences, 4(2), 38-43.

  • Dam, N. A. K., Le Dinh, T., & Menvielle, W. (2019). A systematic literature review of big data adoption in internationalization. Journal of Marketing Analytics, 7(3), 182-195. https://doi.org/10.1057/s41270-019-00054-7

  • Devpura, N., & Narayan, P. K. (2020). Hourly oil price volatility: The role of COVID-19. Energy Research Letters, 1(2), 13683. https://doi.org/10.46557/001c.13683

  • Dorn, E., Hancock, B., Sarakatsannis, J., & Viruleg, E. (2020). COVID-19 and student learning in the United States: The hurt could last a lifetime. McKinsey Company. https://www.mckinsey.com/industries/public-and-social-sector/our-insights/covid-19-and-student-learning-in-the-united-states-the-hurt-could-last-a-lifetime#

  • Farooq, I., & Ali, S. (2020). COVID-19 outbreak and its monetary implications for dental practices, hospitals and healthcare workers. Postgraduate Medical Journal, 96(1142), 791-792. https://doi.org/10.1136/postgradmedj-2020-137781

  • Fisher, A. G. (1939). Production, primary, secondary and tertiary. Economic Record, 15(1), 24-38. https://doi.org/10.1111/j.1475-4932.1939.tb01015.x

  • Food and Drug Administration (2020). Best practices for retail food stores, restaurants, and food pick-up/delivery services during the COVID-19 pandemic. https://www.fda.gov/food/food-safety-during-emergencies/best-practices-retail-food-stores-restaurants-and-food-pick-updelivery-services-during-covid-19

  • Funke, M., & Tsang, A. (2020). The People’s Bank of China’s response to the coronavirus pandemic-A quantitative assessment. Economic Modelling, 93, 465-473. https://doi.org/10.1016/j.econmod.2020.08.018

  • Gewin, V. (2020). Five tips for moving teaching online as COVID-19 takes hold. Nature, 580(7802), 295-296.

  • Gong, D., Jiang, T., & Lu, L. (2020). Pandemic and bank lending: Evidence from the 2009 H1N1 Pandemic. Finance Research Letters, 39, 101627. https://doi.org/10.1016/j.frl.2020.101627

  • Gössling, S., Scott, D., & Hall, C. M. (2020). Pandemics, tourism and global change: A rapid assessment of COVID-19. Journal of Sustainable Tourism, 29(1), 1-20. https://doi.org/10.1080/09669582.2020.1758708

  • Govindan, K., Mina, H., & Alavi, B. (2020). A decision support system for demand management in healthcare supply chains considering the epidemic outbreaks: A case study of coronavirus disease 2019 (COVID-19). Transportation Research Part E: Logistics Transportation Review, 138, 101967. https://doi.org/10.1016/j.tre.2020.101967

  • Gretzel, U., Fuchs, M., Baggio, R., Hoepken, W., Law, R., Neidhardt, J., Pesonen, J., Zanker, M., & Xiang, Z. (2020). E-tourism beyond COVID-19: A call for transformative research. Information Technology & Tourism, 22, 187-203. https://doi.org/10.1007/s40558-020-00181-3

  • Gupta, M., Abdelmaksoud, A., Jafferany, M., Lotti, T., Sadoughifar, R., & Goldust, M. (2020). COVID‐19 and economy. Dermatologic Therapy, 33(4), e13329. https://doi.org/10.1111/dth.13329

  • Gursoy, D., & Chi, C. G. (2020). Effects of COVID-19 pandemic on hospitality industry: Review of the current situations and a research agenda. Journal of Hospitality Marketing & Management, 29(5), 527-529. https://doi.org/10.1080/19368623.2020.1788231

  • Haleem, A., Javaid, M., & Vaishya, R. (2020). Effects of COVID 19 pandemic in daily life. Current Medicine Research Practice, 10(2), 78. https://doi.org/10.1016/j.cmrp.2020.03.011

  • Hobbs, J. E. (2020). Food supply chains during the COVID‐19 pandemic. Canadian Journal of Agricultural Economics, 68(2), 171-176. https://doi.org/10.1111/cjag.12237

  • Huremović, D. (2019). Brief history of pandemics (pandemics throughout history). In Psychiatry of pandemics (pp. 7-35). Springer. https://doi.org/10.1007/978-3-030-15346-5_2

  • International-Monetary-Fund. (2019). Fiscal monitor: How to mitigate climate change. https://www.imf.org/en/Publications/FM/Issues/2019/09/12/fiscal-monitor-october-2019

  • International-Monetary-Fund. (2020). Fiscal monitor: Policies to support people during the COVID-19 pandemic. https://www.imf.org/-/media/Files/Publications/fiscal-monitor/2020/April/English/ch1.ashx

  • Jones, K. E., Patel, N. G., Levy, M. A., Storeygard, A., Balk, D., Gittleman, J. L., & Daszak, P. (2008). Global trends in emerging infectious diseases. Nature, 451(7181), 990-993. https://doi.org/10.1038/nature06536

  • Kabir, M., Saqib, M. A. N., Zaid, M., Ahmed, H., & Afzal, M. S. (2020). COVID-19, economic impact and child mortality: A global concern. Clinical Nutrition, 39(7), 2322-2323. https://doi.org/10.1016/j.clnu.2020.05.027

  • Keshav, S. (2007). How to read a paper. ACM SIGCOMM Computer Communication Review, 37(3), 83-84. https://doi.org/10.1145/1273445.1273458

  • Kumar, M. S., Raut, R. D., Narwane, V. S., & Narkhede, B. E. (2020). Applications of industry 4.0 to overcome the COVID-19 operational challenges. Diabetes Metabolic Syndrome: Clinical Research Reviews, 14(5), 1283-1289. https://doi.org/10.1016/j.dsx.2020.07.010

  • Kwiatkowska, W. (2015). The service sector in the economy in Poland and European Union countries. Olsztyn Economic Journal, 10(3), 191-207.

  • Laborde, D., Martin, W., Swinnen, J., & Vos, R. (2020). COVID-19 risks to global food security. Science, 369(6503), 500-502. https://doi.org/10.1126/science.abc4765

  • Lahmiri, S., & Bekiros, S. (2020). The impact of COVID-19 pandemic upon stability and sequential irregularity of equity and cryptocurrency markets. Chaos, Solitons Fractals, 138, 109936. https://doi.org/10.1016/j.chaos.2020.109936

  • Loopstra, R. (2020). Vulnerability to food insecurity since the COVID-19 lockdown. The Food Foundation.

  • Ly, T., Selgelid, M., & Kerridge, I. (2007). Pandemic and public health controls: Toward an equitable compensation system. Journal of Law and Medicine, 15, 296-307.

  • Madhav, N., Oppenheim, B., Gallivan, M., Mulembakani, P., Rubin, E., & Wolfe, N. (2018). Pandemics: Risks, impacts, and mitigation. In Disease control priorities, third edition (Volume 9): Improving health and reducing poverty (pp. 315-345). The World Bank. https://doi.org/10.1596/978-1-4648-0527-1_ch17

  • Marjanović, V. (2010). Significance and influence of economic structure on economic development. Economic Themes, 369-382.

  • Matheny, J., Toner, E., & Waldhorn, R. (2007). Financial effects of an influenza pandemic on US hospitals. Journal of Health Care Finance, 34(1), 58-63.

  • Ménard, C., & Valceschini, E. (2005). New institutions for governing the agri-food industry. European Review of Agricultural Economics, 32(3), 421-440. https://doi.org/10.1093/eurrag/jbi013

  • Mohammad, S., Asutay, M., Dixon, R., & Platonova, E. (2020). Liquidity risk exposure and its determinants in the banking sector: A comparative analysis between Islamic, conventional and hybrid banks. Journal of International Financial Markets, Institutions Money, 66, 101196. https://doi.org/10.1016/j.intfin.2020.101196

  • Morse, S. S. (2001). Factors in the emergence of infectious diseases. In Plagues and politics (pp. 8-26). Springer. https://doi.org/10.1057/9780230524248_2

  • Nguyen, D. T., Phan, D. H. B., Ming, T. C., & Nguyen, V. K. L. (2021). An assessment of how COVID-19 changed the global equity market. Economic Analysis and Policy, 69, 480-491. https://doi.org/10.1016/j.eap.2021.01.003

  • Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International Journal of Surgery, 78, 185-193. https://doi.org/10.1016/j.ijsu.2020.04.018

  • Niestadt, M. (2020). COVID-19 and the tourism sector. European Parliamentary Research Service. https://www.europarl.europa.eu/RegData/etudes/ATAG/2020/649368/EPRS_ATA(2020)649368_EN.pdf

  • OECD. (2020). Tourism policy responses to the coronavirus (COVID-19). OECD Policy Responses to Coronavirus (COVID-19). OECD Publishing. https://doi.org/10.1787/6466aa20-en

  • Paul, S. K., & Chowdhury, P. (2020). A production recovery plan in manufacturing supply chains for a high-demand item during COVID-19. International Journal of Physical Distribution Logistics Management, 51(2), 104-125. https://doi.org/10.1108/IJPDLM-04-2020-0127

  • Pitman, R., Nagy, L., & Sculpher, M. (2013). Cost-effectiveness of childhood influenza vaccination in England and Wales: Results from a dynamic transmission model. Vaccine, 31(6), 927-942. https://doi.org/10.1016/j.vaccine.2012.12.010

  • Preaud, E., Durand, L., Macabeo, B., Farkas, N., Sloesen, B., Palache, A., Shupo, F., & Samson, S. I. (2014). Annual public health and economic benefits of seasonal influenza vaccination: A European estimate. BMC Public Health, 14(1), 813. https://doi.org/10.1186/1471-2458-14-813

  • Qiu, W., Rutherford, S., Mao, A., & Chu, C. (2017). The pandemic and its impacts. Health, Culture Society, 9, 1-11. https://doi.org/10.5195/hcs.2017.221

  • Rekatsina, M., Paladini, A., Moka, E., Yeam, C. T., Urits, I., Viswanath, O., Kaye, A. D., Morgan, J. A., & Varrassi, G. (2020). Healthcare at the time of COVID-19: A review of the current situation with emphasis on anesthesia providers. Best Practice Research Clinical Anaesthesiology, 34(3), 539-551. https://doi.org/10.1016/j.bpa.2020.07.002

  • Rickenberg, T. A., Neumann, M., Hohler, B., & Breitner, M. (2012, August 9-12). Enterprise content management-A literature review. Proceedings of the Eighteenth Americas Conference on Information Systems. https://aisel.aisnet.org/amcis2012/proceedings/DataInfoQuality/10

  • Saunders-Hastings, P. R., & Krewski, D. (2016). Reviewing the history of pandemic influenza: Understanding patterns of emergence and transmission. Pathogens, 5(4), 66. https://doi.org/10.3390/pathogens5040066

  • Schafran, A., McDonald, C., Lopez Morales, E., Akyelken, N., & Acuto, M. (2018). Replacing the services sector and three-sector theory: Urbanization and control as economic sectors. Regional Studies, 52(12), 1708-1719. https://doi.org/10.1080/00343404.2018.1464136

  • Shehzad, K., Xiaoxing, L., & Kazouz, H. (2020). COVID-19’s disasters are perilous than global financial crisis: A rumor or fact? Finance Research Letters, 36, 101669. https://doi.org/10.1016/j.frl.2020.101669

  • Shorey, S., & Valerie, C. (2020). Lessons from past epidemics and pandemics and a way forward for pregnant women, midwives and nurses during COVID-19 and beyond: A meta-synthesis. Midwifery, 90, 102821. https://doi.org/10.1016/j.midw.2020.102821

  • Shrestha, N., Shad, M. Y., Ulvi, O., Khan, M. H., Karamehic-Muratovic, A., Nguyen, U.-S. D., Baghbanzadeh, M., Wardrup, R., Aghamohammadi, N., & Cervantes, D. (2020). The impact of COVID-19 on globalization. One Health, 11, 100180. https://doi.org/10.1016/j.onehlt.2020.100180

  • Sigala, M. (2020). Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research. Journal of Business Research, 117, 312-321. https://doi.org/10.1016/j.jbusres.2020.06.015

  • Stock, J. H. (2020, May 12). Reopening the coronavirus-closed economy.  Brookings. https://www.brookings.edu/research/reopening-the-coronavirus-closed-economy/

  • Suau-Sanchez, P., Voltes-Dorta, A., & Cugueró-Escofet, N. (2020). An early assessment of the impact of COVID-19 on air transport: Just another crisis or the end of aviation as we know it? Journal of Transport Geography, 86, 102749. https://doi.org/10.1016/j.jtrangeo.2020.102749

  • Sulistiyani, S. R. (2020). The impact of the Covid-19 pandemic on the manufacturing industry. International Journal of Research and Innovation in Social Science, 4(6), 172-175. https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-4-issue-6/172-175.pdf

  • Swinburn, B. A., Sacks, G., Hall, K. D., McPherson, K., Finegood, D. T., Moodie, M. L., & Gortmaker, S. L. (2011). The global obesity pandemic: Shaped by global drivers and local environments. The Lancet, 378(9793), 804-814. https://doi.org/10.1016/S0140-6736(11)60813-1

  • Tanriverdi, G., Bakir, M., & Merkert, R. (2020). What can we learn from the JATM literature for the future of aviation post Covid-19? A bibliometric and visualization analysis. Journal of Air Transport Management, 89, 101916. https://doi.org/10.1016/j.jairtraman.2020.101916

  • UNESCO. (2020). 290 Million students out of school due to COVID-19: UNESCO releases first global numbers and mobilizes response. https://en.unesco.org/news/290-million-students-out-school-due-covid-19-unesco-releases-first-global-numbers-and-mobilizes

  • Verikios, G. (2020). The dynamic effects of infectious disease outbreaks: The case of pandemic influenza and human coronavirus. Socio-Economic Planning Sciences, 71, 100898. https://doi.org/10.1016/j.seps.2020.100898

  • Voysey, M., Clemens, S. A. C., Madhi, S. A., Weckx, L. Y., Folegatti, P. M., Aley, P. K., Angus, B., Baillie, V. L., Barnabas, S. L., & Bhorat, Q. E. (2021). Safety and efficacy of the ChAdOx1 nCoV-19 vaccine (AZD1222) against SARS-CoV-2: An interim analysis of four randomised controlled trials in Brazil, South Africa, and the UK. The Lancet, 397(10269), 99-111. https://doi.org/10.1016/S0140-6736(20)32661-1

  • World-Tourism-Organization. (2020). 100% of global destinations now have covid-19 travel restriction. https://www.unwto.org/news/covid-19-travel-restrictions

  • Zhong, R., Xu, X., & Wang, L. (2017). Food supply chain management: Systems, implementations, and future research. Industrial Management Data Systems, 117(9), 2085-2114.

  • Zuber, S., & Brüssow, H. (2020). COVID 19: Challenges for virologists in the food industry. Microbial Biotechnology, 13(6), 1689-1701. https://doi.org/10.1111/1751-7915.13638

ISSN 0128-7680

e-ISSN 2231-8526

Article ID

JSSH-8137-2021

Download Full Article PDF

Share this article

Recent Articles