The extent of the shock to economic growth by the epidemic and the recovery effect: evidence from China since 2020

ABSTRACT

The Covid-19 pandemic has exerted significant downward pressure on economic activity. In this paper, we examine the extent of the epidemic shock and recovery effects on economic growth by province in China since 2020. We find that the extent of the epidemic shock on economic growth in China has been gradually weakening. Still, the economy has not yet fully recovered from the shock. Also, there is some heterogeneity across provinces in the extent to the economic growth shocked by epidemic and the recovery effects.

KEYWORDS:

• COVID-19
• economic growth
• shock
• recovery
• region

JEL CLASSIFICATION:

• O11
• O18
• O40
• R1

Acknowledgments

This work was supported by the National Social Science Foundation of China (19ZDA055), National Natural Science Foundation of China (41661027) and the Philosophy and Social Science Planning Project of Zhejiang Province (21NDJC065YB).We are grateful to the contributions given by Dr. Jiewen Zhou from the School of Economics and Management, Nanchang University and Dr. Xiangwei Sun from the School of Business, Zhengzhou University.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the National Social Science Foundation of China [19ZDA055]; National Natural Science Foundation of China [41661027]; the Philosophy and Social Science Planning Project of Zhejiang Province [21NDJC065YB].