Manuscript Title:

INEQUALITY OF COUNTRIES’CAPABILITIES IN DEALING WITH COVID-19 PANDEMIC AND ITS IMPACT ON THE GLOBAL ECONOMY

Author:

UNGGUL PRIYADI, EKO ATMADJI, LISTYAENDANG ARTIANI, MOCHAMAD ALI IMRON

DOI Number:

DOI:10.17605/OSF.IO/6PE7G

Published : 2021-12-10

About the author(s)

1. UNGGUL PRIYADI - Economics Department, Universitas Islam Indonesia, Indonesia.
2. EKO ATMADJI - Economics Department, Universitas Islam Indonesia, Indonesia.
3. LISTYAENDANG ARTIANI - Economics Department, Universitas Islam Indonesia, Indonesia.
4. MOCHAMAD ALI IMRON - Management and Humanities Department, UniversitiTeknologi PETRONAS, Malaysia.

Full Text : PDF

Abstract

The COVID-19 Pandemic impacts on the multi- sectoral, including disrupting the economic growth of many countries. This study aims to analyze the impact of the COVID-19 pandemic, inequalities’ capabilities in dealing the Covid-19 as well as fiscal and monetary capabilities, and the income status of the country on the economic growth of the affected countries. The results of this study give the implication that all countries in the world need to continue to watch out for the increase of cases and the time of exposure to the COVID-19 Pandemic to not affect the sharper contraction of economic growth. At the same time, the countries affected by the pandemic need to more carefully manage their fiscal and monetary policy, especially government spending and debt management. The effectiveness of government spending and debt needs to be continuously improved so it can be a positive impact on their economic recovery. If the pandemic is under control (in cases and time of exposure) and there are no disparities in governance between regions and countries, then global economic growth is potentially positive 0.18%. If government spending to tackle the pandemic is increased by one million dollars, this measure has the potential to reduce the impact of the contraction by 0.27%. In relative terms, the impact of a Covid-19 pandemic in terms of health and economic growth from worst is Asia, America, Africa, Europe and Oceania


Keywords

Covid-19, Economic Growth, Inequality, Fiscal, Monetary, Global Economy