The Impact of COVID-19 on Different Industries and Sectors
Over the first three years of this pandemic, many industrial and service sectors around the world have been affected. While some have benefited, others have suffered.
As a result of the pandemic, the film industry has experienced an abrupt decrease in business turnover. While some businesses have managed to weather the storm, others have had no choice but to shut down.
Travel and tourism, which account for 10% of global GDP and jobs, have been hit particularly hard. Many domestic and international flights have been grounded due to this disruption.
Other industry sectors, such as real estate, have also been adversely affected by the outbreak. As a result, these sectors have seen an uptick in quarantines, curfews and employee layoffs due to the virus outbreak.
Global consumer spending has experienced a decrease.
Global financial markets have also been affected, leading to a decrease in stock values.
Reports indicate that some companies are experiencing cash flow difficulties and an absence of employees.
Additionally, some companies face a high likelihood of closure and the loss of their entire business operations.
These factors could have a severe negative effect on the stock market returns of these industries and result in substantial losses of value for investors.
The second focus of the study is to analyze the effect of COVID-19 on different creative subsectors from an empirical standpoint. By using panel data on listed companies, this paper attempts to pinpoint whether there have been any impacts on stock market returns in cultural industries due to this pandemic.
Additionally, we observe an inverted U-shaped relationship between the stock market returns of different creative sub-sectors and total confirmed cases and deaths caused by COVID-19; this suggests a gradual decrease in the negative marginal impact of COVID-19 on these industries.
Furthermore, we demonstrate that the degree of negative effect from the epidemic varies according to industry size. This implies that larger creative enterprises experience less negative consequences on their stock prices compared with small or newly-established firms.
Another factor contributing to the effects of COVID-19 on global economy is supply chain disruption caused by the disease. As a result, many countries have implemented policies and measures designed to stabilize supplies of food, water, fuel and other essential necessities.
Some countries have implemented new regulations to restrict the movement of people, goods and other materials in an effort to stop the spread of influenza virus.
Though government efforts to manage the virus have been successful in some regions, there remain areas where COVID-19 is wreaking havoc. This has been especially true of China where the virus is spreading rapidly and claiming a large number of its population.
By 2023 and beyond, the COVID-19 pandemic is expected to remain one of the leading infectious causes of death worldwide. This has created a global health emergency that requires a coordinated global response.
