The impact of COVID-19 on the tourism and hospitality Industry: Evidence from international stock markets
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Date
2023
Authors
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Journal ISSN
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Publisher
Elservier
Abstract
COVID-19 seriously affects the tourism and hospitality industry. In this study, we investigate the
behavior of 40 tourism and hospitality stock market indices worldwide from two perspectives.
First, empowered by the Granger causality test and network analysis, we test the spillover effects
among these stock markets and find that the dynamics of interconnectedness network structures
differ significantly in the pre-pandemic and in-pandemic periods. Second, we employ econometric
models to explore how the influence of COVID-19 on these stock markets varies by considering
the interconnectedness structure, the government response stringency index, and other countrylevel
characteristics. We find that the interconnectedness structure significantly and robustly
affects stock returns in the tourism and hospitality markets. Our investigation provides a better
understanding of the impact of COVID-19 on tourism and hospitality industry.
Description
North American Journal of Economics and Finance 64 (2023) 101875
Keywords
COVID-19,Spillover effects,Interconnectedness,Tourism and hospitality,Network