COVID-19, Remittance Inflows, and the Stock Market: Empirical Evidence from Bangladesh

• 발행기관: 한국유통과학회
• 저자명: Md. QAMRUZZAMAN Salma KARIM Ishrat JAHAN
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.5, 265~275쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.05.30

영문 초록

This study’s motivation is to investigate the association between the stock market, remittance, and the pandemic of COVID-19 for the period from March 3, 2020, to December 14, 2020. For evaluating the impact of COVID-19 and remittances on stock market behaviour during the pandemic, the study applies Autoregressive Distributed lagged (ARDL) for magnitudes estimation and directional association through the Toda-Yamamoto causality test. Study findings from ARDL estimation revealed that COVID-19 measured by detecting new cases negatively influences the stock market both in the long-term and short-term. Remittance positively influences the stock market behaviour, particularly in the long-term. Furthermore, the directional causality test disclosed unidirectional causal effects between COVID-19 and the stock market behaviour, which establishes all proxy measures for the equation’s stock market. The hypothesis results explain the causal relationship between remittance inflows and the stock market in Bangladesh. The study’s application will help policymakers rethink the policies for channelizing remittances for productive investment areas. Furthermore, the study’s findings will reinstate the widely perceived notions, which is the critical role of remittance in the economy even though the economy passes through a great pandemic.

목차

1. Introduction

2. Literature Review

3. Methodology

4. Results and Discussion

5. Conclusion

키워드

COVID-19 Stock Market Stock Market Remittances ARDL Toda-Yamamoto