THE IMPACT OF THE COVID-19 PANDEMIC ON THE GOVERNMENT INTERVENTIONS ACROSS THE FINANCIAL SYSTEM. A WORLDWIDE SAMPLE
THE IMPACT OF THE COVID-19 PANDEMIC ON THE GOVERNMENT INTERVENTIONS ACROSS THE FINANCIAL SYSTEM. A WORLDWIDE SAMPLE
Author(s): Ioana FărcaşSubject(s): National Economy, Supranational / Global Economy, Government/Political systems, Health and medicine and law, Economic development, Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: fiscal measures; COVID-19 pandemic; government interventions;
Summary/Abstract: The COVID-19 pandemic had a significant impact on all sectors, especially on the financial sector. The creditworthiness of households and companies decreased significantly, and many investors were more reluctant to invest their savings. The aim of this study is to examine whether the COVID-19 pandemic can influence the volume of government interventions within the financial sector. We employ quarterly data from 2020, having a worldwide sample of 49 countries located in six continents. The main findings show that the pandemic negatively influences the volume of financial assistance offered to weak financial institutions. Further, the most affected countries by the pandemic are less likely to introduce rescuing measures for the troubled financial institutions due to higher expenses provided to the healthcare system. These results remain robust for different subsamples, such as high-income vs low-income economies. (134 words).
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2023
- Issue No: 32
- Page Range: 9-22
- Page Count: 14
- Language: English
