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


ABSTRACT:

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.