ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

The Impact of SARS Epidemic and Financial Crisis on China’s Economy Structure Referenced to the Potential Impact of COVID-19

Hai Long and Jianzhi Zhao

Correspondence: Jianzhi Zhao, jianzhizhao@fudan.edu.cn

School of International Relation & Public Affairs, Fudan University, China

pdf (916.36 Kb) | doi: https://doi.org/10.47260/bae/816

Abstract

This empirical study employs regression models to investigate some deep economic determinants, such as human capital, business environment, to investigate what extent China’s economy structure is likely hit by SARS epidemic in 2003 and global financial crisis in 2008. It finds that China’s economy structure is unchanged after the hits, the deep economy determinants and GDP remain upward. Human capital accumulation is the significant deep factor, and both SARS epidemic and financial crisis have no impact on the long-run factor, accordingly, China’s economy growth is sustainable. It suggests further human capital including labor quantity and education is currently the most significant determinants for China’s economy sustainability, followed by the upgrading business environment. The evidence based on SARS and financial crisis may have certain reference value to estimate the potential impact of COVID-19 on China’s economy structure in the future.

Keywords:

  COVID-19, SARS epidemic, Financial crisis, Economy structure, Deep determinants


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