Covid-19, oil price and UK economic policy uncertainty: evidence from the ARDL approach

Saeed Sazzad Jeris; Ridoy Deb Nath; Saeed Sazzad Jeris; Ridoy Deb Nath

doi:10.3934/QFE.2020023

Quantitative Finance and Economics

2020, Volume 4, Issue 3: 503-514. doi: 10.3934/QFE.2020023

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Covid-19, oil price and UK economic policy uncertainty: evidence from the ARDL approach

Saeed Sazzad Jeris ^,,
Ridoy Deb Nath

Department of Business Administration, Shahjalal University of Science and Technology, Sylhet, Bangladesh

Received: 15 May 2020 Accepted: 29 June 2020 Published: 13 July 2020
JEL Codes: E52, E60, F62, G01

This study attempts to investigate how the spread of coronavirus (COVID-19) influence the UK economic policy uncertainty. Using daily data ranging from 11 March 2020 to 7 May 2020, an ARDL model has been applied in this study to capture both the short-run and long-run impact of COVID-19 on economic policy uncertainty. Additionally, the influence of Brent oil price on economic policy uncertainty is also examined. Based on the ARDL result, it is found that both COVID-19 new cases and new deaths reported in the UK have a strong and positive association with the UK economic policy uncertainty in the long-run. However, Brent oil price shows an inverse connection with economic policy uncertainty in the long run.
- COVID-19,
- oil price,
- economic policy uncertainty,
- short-run,
- long-run,
- ARDL
Citation: Saeed Sazzad Jeris, Ridoy Deb Nath. Covid-19, oil price and UK economic policy uncertainty: evidence from the ARDL approach[J]. Quantitative Finance and Economics, 2020, 4(3): 503-514. doi: 10.3934/QFE.2020023

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Abstract

This study attempts to investigate how the spread of coronavirus (COVID-19) influence the UK economic policy uncertainty. Using daily data ranging from 11 March 2020 to 7 May 2020, an ARDL model has been applied in this study to capture both the short-run and long-run impact of COVID-19 on economic policy uncertainty. Additionally, the influence of Brent oil price on economic policy uncertainty is also examined. Based on the ARDL result, it is found that both COVID-19 new cases and new deaths reported in the UK have a strong and positive association with the UK economic policy uncertainty in the long-run. However, Brent oil price shows an inverse connection with economic policy uncertainty in the long run.

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