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Studies on the COVID-19 pandemic are more likely to concentrate on the effects of the virus while ignoring its time-series characteristics, particularly its stationarity characteristics. Thus, this study attempts to investigate the effectiveness of policy interventions against COVID-19 by determining the permanent or transitory effects in 5 major regions and the ten most infected countries. Using the endogenous multiple breaks unit root tests introduced by Kapetanios (2005), the findings indicate that only the impacts of shocks to COVID-19 infection rates in France are likely to be permanent. However, the transitory effect is found in Brazil, Germany, Iran, Italy, Russia, Spain, Turkey, the United Kingdom, and the United States. The country where the shock has a permanent impact is suitable for policy interventions, including lockdowns, social isolation, and local isolation. While herd immunity, which protects the entire population against COVID-19, is better ideal for application in countries that experience shocks with a transitory effect.JEL Classification: C1, I15, I18How to Cite:Tang, C.F., & Tan, B.W. (2023). How Effective are Policy Interventions Against the COVID-19 Infection Rates? Etikonomi, 22(1), 1–14. https://doi.org/10.15408/etk.v22i1.28486.

ASEAN’s move to regionalise local enterprises has spurred outward foreign direct investment (FDI) flows as well as enabled sustained economic growth for ASEAN member states over the last two decades. This study examines the impact of outward FDI on economic growth in ASEAN-8 countries from 2000-2019. It employs the Pooled Mean Group (PMG) estimation approach to evaluate the effects of outward FDI on national economic growth. The findings indicate that outward FDI is positively and statistically significant in fostering economic growth in the ASEAN region over the short-run. However, such outward investments negatively impact the region’s economic growth over the long-run. The results indicate that regional policy makers need to adopt a flexible approach when formulating policy initiatives that incentivise outward FDI to ensure the continued sustenance of economic growth in the ASEAN region.

PurposeThe Association of Southeast Asian Nations (ASEAN) has evolved into ASEAN Economic Community (AEC), which aims to pursue a single market and production base to transform ASEAN into a dynamic, competitive and global region. ASEAN is inherently heterogeneous that potentially could promote further economic integration, fundamentally, through the interactions between intra-regional outward foreign direct investment (OFDI), export trade and economic growth. Hence, this paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries.Design/methodology/approachThis paper attempts to explore the causal relationship between intra-ASEAN OFDI, intra-ASEAN exports and economic growth of ASEAN-10 countries, using regional panel data based on Dumitrescu and Hurlin (2012) non-causality analysis, which allows us to take into account of the heterogeneity in terms of causal relationships.FindingsThe empirical study shows bidirectional causality between intra-ASEAN export and intra-ASEAN OFDI, a bidirectional causality between intra-ASEAN export trade and intra-ASEAN economic growth and a unidirectional causality running from the real GDP of ASEAN-10 countries to intra-ASEAN OFDI.Research limitations/implicationsThe findings have implications for the extent of intra-ASEAN production fragmentation, policy formulations for furthering intra-regional OFDI, and trade to achieve the ASEAN integration agenda.Originality/valueThe main contribution of the current study is to use the panel causality analysis for an emerging dynamic region, specifically, the AEC. As far as we know, this is the first study ascertaining whether there is a causality relationship between intra-ASEAN OFDI, intra-ASEAN export trade and economic growth of ASEAN-10, which is a longstanding objective of ASEAN integration agenda.

WOS: 000457020400005, This paper investigates the electricity-growth nexus of Gulf Cooperation Council (GCC) member countries from 1980 to 2014. To achieve the goal of this research, both panel cointegration and causality approaches are utilised to examine the long-term and causal relationships between variables. Empirical results confirm the presence of cointegration between variables. Moreover, this study finds that electricity consumption affects the long-term economic growth. Given that GCC member countries are energy-dependent economies, policies that aim to conserve energy consumption may jeopardise economic growth.

This study attempts to analyse the relationship between energy consumption and economic growth in Vietnam using the neoclassical Solow growth framework for the 1971–2011 period. The concept and methods of cointegration and Granger causality are used to establish the relationship between the variables of interest. Our results confirm the existence of cointegration among the variables. In particular, energy consumption, FDI and capital stock were found positively influence economic growth in Vietnam. The Granger causality test revealed unidirectional causality running from energy consumption to economic growth. Hence, Vietnam is an energy-dependent economy and any energy or environment policy drawn up in an attempt to conserve energy will jeopardise the process of economic development in Vietnam. For this reason, the renewable energy policy should be given attention to provide sufficient supplies of energy to speed up economic expansion. Investment in R&D may be required to incentivise private/public institutions to engage in this innovation, while the awareness for energy-saving policy among public could be integrated to meet social economic development.

The aim of this study is to understand the relationship between CO2 (carbon dioxide) emissions, energy consumption, FDI (foreign direct investment) and economic growth in Vietnam over the period from 1976 to 2009. The techniques of cointegration and Granger causality are adopted to examine the relationship between the variables. The results confirm the existence of long-run equilibrium among the variables of interest. Meanwhile, energy consumption and income positively influence CO2 emissions, but square of income has negative impact on CO2 emissions in Vietnam. These outcomes support the EKC (Environmental Kuznets Curve) hypothesis which assumes an inverted U-shaped relationship between CO2 emissions and economic growth in Vietnam. The results of this study also reveal that there are two-way causalities between CO2 emissions and income, and between FDI and CO2 emissions in Vietnam. In addition, energy consumption is found to Granger-cause CO2 emissions in the short- and long-run. Energy consumption, FDI and income are the key determinants of CO2 emissions in Vietnam. Therefore, adoption of clean technologies by foreign investment is important in curtailing CO2 emissions in the country, and sustaining economic development at the same time.

The aim of this study is to understand the relationship between savings and economic growth in Pakistan over the period 1971–2011. The cointegration and the Granger causality tests are adopted to examine the relationship between the variables. The results confirm the existence of long-run equilibrium among the variables of interest. Meanwhile, savings have positively affected economic growth in both the short run and long run. The Granger results also show that savings Granger-cause economic growth. Based upon these findings, we confirm that savings is a catalyst of growth for the Pakistani economy. Additionally, our results seem more likely to support the capital fundamentalists because the long run estimation as well as the Granger causality results also indicates that savings growth can effectively spur economic growth in Pakistan.

The aim of this study is to analyse the causal relationship among energy consumption, economic growth, relative price, financial development (FD) and foreign direct investment in Malaysia using a multivariate framework. This study covers a sample from 1972 to 2009. Both the Johansen–Juselius cointegration test and bounds testing approach to cointegration consistently suggest that the variables are cointegrated. We find that energy consumption and economic growth Granger causes each other in the short and long run. In addition, both FDI-led growth and finance-led growth hypotheses are also supported by the findings from this study. Ultimately, energy is a prominent resource for financial sector development in Malaysia because we find that energy consumption Granger causes FD. Policymakers should implement a dual strategy that, on one hand, increases investment in energy infrastructure to ensure that the supply of energy is sufficient for the financial sector and economic development, while, on the other, encourages R&D in green technology such as exercising proper soil conservation techniques and sustainable farming practices in order to reduce the consumption of fossil fuels. By doing so, environmental problems such as carbon dioxide emissions can be minimised without affecting economic growth and financial sector development in Malaysia.