The Effect of Coronavirus Epidemic on Middle East Stock Indexes Using the ARDL Panel Approach

Subject Areas : Journal of Capital Market Analysis

vahid gachi ¹

1 - eslamic azad university shiraz

Received: 2024-02-29 Accepted : 2024-07-16 Published : 2024-12-19

Keywords: Fear of COVID-19, Global stock market, Coronavirus, Panel ARDL,

Abstract :

The coronavirus has turned a health crisis into an economic crisis, and its outbreak has led to strong negative reactions by stock markets in different countries as well as price fluctuations of many macroeconomic variables. On the other hand, the spread of the virus provides a basis for investigating the effects of its spread on stock markets and economic variables as well as the power of influence and speed of dissemination of information in these markets during the crisis. This study aims to investigate the effect of the Coronavirus epidemic on stock markets in Middle Eastern countries in two different periods and compare them with each other. The results show that in the first period, there was a short-term relationship between variables and the coronavirus had a negative and significant effect on the stock index, with the implementation of social distancing policies and quarantine the negative impact of the virus during the period the second one is gone, and the virus hasn't caused the country's stocks to fall.

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