COVID-19 and Economic Growth: Does Good Government Performance Pay Off?
Abstract The coronavirus pandemic led to substantial revisions of 2020 GDP growth projections. We analyse whether and to what extent the quality of government policies in handling the health aspects of the crisis influence cross-country differences in the economic impact of the pandemic as projected...
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| Format: | Article |
| Language: | English |
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Springer
2020-07-01
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| Series: | Intereconomics |
| Online Access: | https://doi.org/10.1007/s10272-020-0906-0 |
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| author | Michael König Adalbert Winkler |
| author_facet | Michael König Adalbert Winkler |
| author_sort | Michael König |
| collection | DOAJ |
| description | Abstract The coronavirus pandemic led to substantial revisions of 2020 GDP growth projections. We analyse whether and to what extent the quality of government policies in handling the health aspects of the crisis influence cross-country differences in the economic impact of the pandemic as projected by the OECD, the IMF and the World Bank. We measure policy quality by a recently published Economist Intelligence Unit index and a COVID-19 Misery index combining the stringency of government-imposed distancing measures with the COVID-19 fatality rate. Moreover, we control for international spillovers captured by trade openness and export exposure to tourism. Results for most specifications show that good government performance pays off as the respective countries record less severe revisions of growth forecasts. Only in a few cases, our findings suggest that the pandemic’s global effect might be so strong that actions by individual governments do not affect cross-country differences of growth revisions. Finally, there is broad evidence supporting the view that a country’s exposure to the global economy influences its growth outlook relative to other countries. |
| format | Article |
| id | doaj-art-658da6be9d724b938f2714ce067e6c7f |
| institution | Kabale University |
| issn | 0020-5346 1613-964X |
| language | English |
| publishDate | 2020-07-01 |
| publisher | Springer |
| record_format | Article |
| series | Intereconomics |
| spelling | doaj-art-658da6be9d724b938f2714ce067e6c7f2025-01-17T08:34:13ZengSpringerIntereconomics0020-53461613-964X2020-07-0155422423110.1007/s10272-020-0906-0COVID-19 and Economic Growth: Does Good Government Performance Pay Off?Michael König0Adalbert Winkler1International and Development Finance, Frankfurt School of Finance and ManagementInternational and Development Finance, Frankfurt School of Finance and ManagementAbstract The coronavirus pandemic led to substantial revisions of 2020 GDP growth projections. We analyse whether and to what extent the quality of government policies in handling the health aspects of the crisis influence cross-country differences in the economic impact of the pandemic as projected by the OECD, the IMF and the World Bank. We measure policy quality by a recently published Economist Intelligence Unit index and a COVID-19 Misery index combining the stringency of government-imposed distancing measures with the COVID-19 fatality rate. Moreover, we control for international spillovers captured by trade openness and export exposure to tourism. Results for most specifications show that good government performance pays off as the respective countries record less severe revisions of growth forecasts. Only in a few cases, our findings suggest that the pandemic’s global effect might be so strong that actions by individual governments do not affect cross-country differences of growth revisions. Finally, there is broad evidence supporting the view that a country’s exposure to the global economy influences its growth outlook relative to other countries.https://doi.org/10.1007/s10272-020-0906-0 |
| spellingShingle | Michael König Adalbert Winkler COVID-19 and Economic Growth: Does Good Government Performance Pay Off? Intereconomics |
| title | COVID-19 and Economic Growth: Does Good Government Performance Pay Off? |
| title_full | COVID-19 and Economic Growth: Does Good Government Performance Pay Off? |
| title_fullStr | COVID-19 and Economic Growth: Does Good Government Performance Pay Off? |
| title_full_unstemmed | COVID-19 and Economic Growth: Does Good Government Performance Pay Off? |
| title_short | COVID-19 and Economic Growth: Does Good Government Performance Pay Off? |
| title_sort | covid 19 and economic growth does good government performance pay off |
| url | https://doi.org/10.1007/s10272-020-0906-0 |
| work_keys_str_mv | AT michaelkonig covid19andeconomicgrowthdoesgoodgovernmentperformancepayoff AT adalbertwinkler covid19andeconomicgrowthdoesgoodgovernmentperformancepayoff |