Special Issue "The Influence of Covid-19 on Sustainable Economy"

A special issue of Sustainability (ISSN 2071-1050).

Deadline for manuscript submissions: 31 December 2021.

Special Issue Editors

Dr. Darko Vukovic
E-Mail Website
Guest Editor
1. Finance and credit department, Faculty of Economics, People’s Friendship University of Russia (RUDN University), Moscow, Russia 2. Geographical Institute Jovan Cvijic of Serbian Academy of Sciences and Arts, Belgrade, Serbia.
Interests: regional economy; economic geography; investment finance; financial risk management
Special Issues and Collections in MDPI journals
Dr. Moinak Maiti
E-Mail Website
Guest Editor
Department of Finance,St.Petersburg School of Economics and Management, National Research University Higher School of Economics, Saint Petersburg, Russia
Interests: asset pricing; behavioral finance; big data analytics; financial econometrics; risk modeling
Special Issues and Collections in MDPI journals
Prof. Michael Frömmel
E-Mail Website
Guest Editor
Department of Economics, Ghent University, Ghent, Belgium
Interests: international financial markets; emerging markets finance; international asset management and institutional investors

Special Issue Information

Dear Colleagues,

In this moment, the world’s biggest challenge is also one of the highest natural and social risks—Covid 19, which is threatening to become the highest disaster in recent history. Social and economic turmoil associated with disasters, especially with the coronavirus pandemic, has wide-ranging and severe impacts on financial markets, including stock, bond, and commodity (including crude oil and gold) markets and almost all social spheres. Covid-19 has reduced consumer spending that could affect a country’s services sector, especially the retail industries, hospitality, tourism, and aviation, among others. OCED cautions that the Covid-19 crisis could be more disastrous than the financial crisis of 2008. In OECD’s March report on the economic growth of all economies, OECD downgraded growth forecast from its 2020 initial forecast. As a consequence, all major financial institutions across the globe cut their forecasted statistics. The scope of this issue is to analyze the impact of Covid-19 on different spheres of economy (financial markets, macro-economies, tourism, industries, service sectors, etc.). A priority is given to studies with the analysis of quantitative data, but also welcome are studies with theoretical discussions. The purpose of this Special Issue is to offer an adequate methodology for measuring, analyzing, and preventing the impact of such crises on the economy. This issue is will assist in the development of literature of crisis analysis and prevention in the wider economy.

Dr. Darko B. Vukovic
Dr. Moinak Maiti
Prof. Michael Frömmel
Guest Editors

References

  1. Albulescu, C. Coronavirus and Financial Volatility: 40 Days of Fasting and Fear. SSRN Electron. J. 2020.
  2. Boot, A. W., Carletti, E., Haselmann, R., Kotz, H. H., Krahnen, J. P., Pelizzon, L., . & Subrahmanyam, M. G. The coronavirus and financial stability (No. 78). SAFE Policy Letter. Available online: https://safe-frankfurt.de/policy-center/policy-publications/policy-publ-detailsview/publicationname/the-coronavirus-and-financial-stability.html
  3. Chinazzi, M.; Davis, J.T.; Ajelli, M.; Gioannini, C.; Litvinova, M.; Merler, S.; Piontti, A.P.Y.; Mu, K.; Rossi, L.; Sun, K.; et al. The effect of travel restrictions on the spread of the 2019 novel coronavirus (COVID-19) outbreak. 2020, eaba9757.
  4. Gallego, V.; Nishiura, H.; Sah, R.; Rodriguez-Morales, A.J. The COVID-19 outbreak and implications for the Tokyo 2020 Summer Olympic Games. Travel Med. Infect. Dis. 2020, 101604.
  5. Kingsly, K., & Henri, K. Coronavirus and Carbon Transition for Developing Economies, 2020. Available at SSRN 3555901.
  6. Maiti, M. India’s services: sector, trade and employment. J. Law Manag. 2018, 00.
  7. Maiti, M. Is ESG the succeeding risk factor? Sustain. Finance Invest. 2020, Investment, 1–15.
  8. Maiti, M.; Vyklyuk, Y.; Vuković, D. Cryptocurrencies Chaotic Co‐movement Forecasting with Neural Networks. Internet Technol. Lett. 2020, e157.
  9. Vuković, D.; Vyklyuk, Y.; Matsiuk, N.; Maiti, M.; Chernova, N. Neural network forecasting in prediction Sharpe ratio: Evidence from EU debt market. A: Stat. Mech. its Appl. 2020, 542, 123331.
  10. Vukovic, D. B., Hanic, E., & Hanic, H. Financial integration in the European Union — the impact of the crisis on the bond market. Equilibrium. Quarterly Journal of Economics and Economic Policy, 2017, 12, 195–210. doi: 10.24136/eq.v12i1.10.
  11. Vuković, D.; Lapshina, K.A.; Maiti, M. European Monetary Union bond market dynamics: Pre & post crisis. Int. Bus. Finance 2019, 50, 369–380.
  12. Ying, T.; Wang, K.; Liu, X.; Wen, J.; Goh, E. Rethinking game consumption in tourism: a case of the 2019 novel coronavirus pneumonia outbreak in China. Tour. Recreat. Res. 2020, 1–6.

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Sustainability is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1900 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Covid-19
  • financial crisis
  • risk management
  • tourism
  • industries
  • sustainability

Published Papers (6 papers)

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Research

Article
COVID-19 Pandemic: Is the Crypto Market a Safe Haven? The Impact of the First Wave
Sustainability 2021, 13(15), 8578; https://doi.org/10.3390/su13158578 - 31 Jul 2021
Viewed by 553
Abstract
The present study investigated whether the crypto market is a safe haven. The study argues that during the first wave of the COVID-19 crisis, gold and oil, as typical global commodities, could have been diversifiers. The study developed a unique COVID-19 global composite [...] Read more.
The present study investigated whether the crypto market is a safe haven. The study argues that during the first wave of the COVID-19 crisis, gold and oil, as typical global commodities, could have been diversifiers. The study developed a unique COVID-19 global composite index that measures COVID-19 pandemic time-variant movements on each day. The study used OLS (ordinary least squares), quantile, and robust regressions to check whether the COVID-19 crisis has had any significant direct influence on the crypto market. The OLS, quantile, and robust regressions estimates confirmed that there was no statistically significant direct influence of the COVID-19 crisis on the crypto market in the first wave period. However, the study found spillovers from risky assets (S&P 500) on the crypto market, with Tether as an exception. Due to this special characteristic, Tether might present a safe haven within the crypto market. Full article
(This article belongs to the Special Issue The Influence of Covid-19 on Sustainable Economy)
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Article
The Asymmetric Impact of Funding Liquidity Risk on the Volatility of Stock Portfolios during the COVID-19 Crisis
Sustainability 2021, 13(4), 2286; https://doi.org/10.3390/su13042286 - 20 Feb 2021
Viewed by 810
Abstract
In this study, we identify economic transmission channels through which changes in funding liquidity conditions in interbank markets asymmetrically affect volatilities of stock portfolios during the COVID-19 crisis. For the purpose of this study, the quantile regression approach is utilized. Controlling for macroeconomic [...] Read more.
In this study, we identify economic transmission channels through which changes in funding liquidity conditions in interbank markets asymmetrically affect volatilities of stock portfolios during the COVID-19 crisis. For the purpose of this study, the quantile regression approach is utilized. Controlling for macroeconomic factors, we document that volatilities of high-risk portfolios increase more in response to a deterioration in funding liquidity conditions compared to less risky portfolios. More importantly, this increase intensifies in high-volatility periods of high-risk portfolios, which implies the impact is stronger during uncertain economic environments, such as the one caused by the COVID-19 outbreak. Full article
(This article belongs to the Special Issue The Influence of Covid-19 on Sustainable Economy)
Article
Transforming the COVID-19 Threat into an Opportunity: The Pandemic as a Stage to the Sustainable Economy
Sustainability 2021, 13(4), 2088; https://doi.org/10.3390/su13042088 - 16 Feb 2021
Cited by 2 | Viewed by 1135
Abstract
The aim of this research is to assess the impact of the economic shocks of supply and demand generated by the COVID-19 crisis on the climate sphere at the level of the Member States of the European Union. In this respect, a macroeconomic [...] Read more.
The aim of this research is to assess the impact of the economic shocks of supply and demand generated by the COVID-19 crisis on the climate sphere at the level of the Member States of the European Union. In this respect, a macroeconomic model was used to obtain firstly an estimate of the measure of demand shock and secondly an estimate of the supply of the economy. These milestones were eventually used to estimate the impact of the two economic shocks on the level of greenhouse gas emissions. The obtained results show that both the shock from the aggregate demand area and that from the aggregate supply area had the effect of decreasing the level of greenhouse gases, leading to a positive effect on the environment. From a quantitative point of view, the model estimates show that, as a result of the manifestation of the two cumulative shocks, the level of greenhouse gas emissions could decrease by about 10%. Full article
(This article belongs to the Special Issue The Influence of Covid-19 on Sustainable Economy)
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Article
Can We Have Our Cake and Eat It? A Review of the Debate on Green Recovery from the COVID-19 Crisis
Sustainability 2021, 13(2), 874; https://doi.org/10.3390/su13020874 - 16 Jan 2021
Cited by 3 | Viewed by 1831
Abstract
As we speed through the development and distribution of a vaccine for the COVID-19 pandemic, economies are suffering through the worst decline of the century while, at the same time, being pushed to comply with global agreements regarding climate change. Because of this, [...] Read more.
As we speed through the development and distribution of a vaccine for the COVID-19 pandemic, economies are suffering through the worst decline of the century while, at the same time, being pushed to comply with global agreements regarding climate change. Because of this, the economic downturn is also seen as an opportunity to speed up the sustainability transition or, in simple terms, to achieve a “green recovery”. What can we expect from a green recovery? We address this question by reviewing position documents in the debate between green recovery and its opponent, “quick rebound”, in the Netherlands. We apply systems thinking to model causal arguments regarding key concepts comprising green recovery and identify issues of consensus and dissensus. Our findings indicate that green recovery is promising for curbing greenhouse gas emissions and addressing growing socioeconomic inequalities. However, the position of what green recovery means for economic growth, including the development of gross domestic product and employment, is still largely unclear and at times contradictory. While some see tradeoffs, others suggest that economic growth and sustainability goals can be achieved simultaneously. Thus, we conclude by reflecting on the question: Can we have our cake and eat it? Full article
(This article belongs to the Special Issue The Influence of Covid-19 on Sustainable Economy)
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Article
Dismissals and Temporary Leaves in Romanian Companies in the Context of Low Demand and Cash Flow Problems during the COVID-19 Economic Lockdown
Sustainability 2020, 12(21), 8850; https://doi.org/10.3390/su12218850 - 25 Oct 2020
Cited by 2 | Viewed by 1490
Abstract
The aim of this study is to describe the relations between low demand, cash flow problems, employee dismissals, and temporary leaves experienced by Romanian companies during the economic lockdown in the first two months of the COVID-19 pandemic outbreak in Romania (16 March–16 [...] Read more.
The aim of this study is to describe the relations between low demand, cash flow problems, employee dismissals, and temporary leaves experienced by Romanian companies during the economic lockdown in the first two months of the COVID-19 pandemic outbreak in Romania (16 March–16 May 2020). For this purpose, we conducted a quantitative study using descriptive, correlation, and regression analyses applied to data collected from company decision-makers. Our results show that demand for products/services and cash flow in companies has decreased significantly, the workforce being affected by dismissals and temporary leaves/furloughing. Additionally, the average linear revenue of companies has been decreasing due to insufficient cash flow, higher absenteeism of workers, customers having been affected, and the demand going down. Therefore, employee dismissals, employee temporary leaves (furlough), and dismissal intentions have been positively correlated with insufficient cash flow in companies and an extremely low demand. Full article
(This article belongs to the Special Issue The Influence of Covid-19 on Sustainable Economy)
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Article
What Drives Stocks during the Corona-Crash? News Attention vs. Rational Expectation
Sustainability 2020, 12(12), 5014; https://doi.org/10.3390/su12125014 - 19 Jun 2020
Cited by 13 | Viewed by 2304
Abstract
We explore if the corona-crash 2020 was driven by news attention or rational expectations about the pandemic’s economic impact. Using a sample of 64 national stock markets covering 94% of the world’s GDP, we find the stock markets’ decline to be mainly associated [...] Read more.
We explore if the corona-crash 2020 was driven by news attention or rational expectations about the pandemic’s economic impact. Using a sample of 64 national stock markets covering 94% of the world’s GDP, we find the stock markets’ decline to be mainly associated with higher news attention and less with rational expectation. We estimate the economic cost from the news hype to amount to USD 3.5 trillion for the US and USD 200 billion on average for the rest of the G8 countries. Full article
(This article belongs to the Special Issue The Influence of Covid-19 on Sustainable Economy)
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