Using daily data on the global coronavirus disease 2019 (Covid-19) deaths, this paper investigates the corresponding effects on the global economic activity measured by the Baltic Exchange Dry Index (BDI). The empirical results based on a structural vector autoregression including crude oil prices (COP) suggest that a weekly increase of 1,000 in daily global Covid-19 deaths results in 10% of a cumulative reduction in BDI after one week and 22% of a cumulative reduction after three months. The effects of global Covid-19 deaths on COP are shown to be insignificant, where the oil price plunge of March 2020 mostly coincides with the corresponding OPEC disagreement.
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Lead investigator: |
Hakan Yilmazkuday |
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Affiliation: |
Florida International University, Miami |
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Primary topic: |
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Status of data collection |
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Type of data being collected: |
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Unit of real-time data collection |
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Start date |
12/2019 |
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End date |
3/2020 |
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