COVID-19 / Macroeconomic Risk / Pension Hub
The Impact of Cultural and Political Factors on the
Spread and Macro-Economic Fallout of COVID-19
Anup Basnet, University of Surrey, Guildford, United Kingdom
Dieter Gramlich, Baden-Wuerttemberg Cooperative State University Heidenheim (DHBW), Germany
Thomas Walker, John Molson School of Business, Concordia University, Montreal, Canada
This study examines how cultural and political factors affect the spread and the macro-economic consequences of the novel coronavirus (SARS-CoV-2) and its associated disease (COVID-19). We argue that political, institutional, and cultural factors can help explain the spread and severity of the virus at the country-level, as well as the gravity of the pandemic’s economic effects. We find that socio-political factors are significant predictors of a country’s resilience to the pandemic. This study highlights the complex and interrelated nature of socio-political country-level characteristics and how they affect a country’s relative success in handling the ongoing epidemic. A better understanding of these relationships should help governments and regulators create better preventative and mitigating measures if or rather when the next pandemic strikes.