An Empirical Examination of the Socio-Economic Consequences of Corona Virus Disease 2019 (Covid-19) Outbreak in US, UK, Germany and China: A Structural Equation Modelling Approach

Abstract

This paper critically examines the socio-economic impact of the Corona virus Disease 2019 (COVID-19), focusing on four developed nations of the world, including China, Germany, UK and US. Survey data was used to analyze the relationship between eight critical socio-economic variables, including economic stability, daily living, mental health, worry about COVID-19, satisfaction with the national government's response to the COVID-19, people's personal finances, satisfaction with fellow citizens' response to the COVID-19, and satisfaction with hospitals' response to the COVID-19. Considering the complexity of the interrelationship between the variables, a structural equation modelling approach was used to assess the impact of the COVID-19 on these variables.  Result shows that the COVID-19 pandemic has affected the daily lives of people. This is also having negative effect on their ability to contribute meaningfully to economic activities, which ultimately affects the economic stability of their nations as a whole. The result from this study also shows the importance of the health sector in nation-building. The health sector has critical roles to play beyond taking care of the sick that have contracted the COVID-19. The health sector is critical in inspiring confidence in the public and causing citizens to be mentally, psychologically and emotionally stable. Mental stability is needed for citizens to carry out their economic activities and contribute meaningfully to economic stability; therefore, the health sector has important role to play during and after the COVID-19 outbreak. The findings from this paper draws the attention of the government as a critical force in resuscitating the economy post COVID-19. The government would have to formulate and implement policies that will inspire confidence as at present, people are somewhat not satisfied with the national government's response to the COVID-19 / coronavirus pandemic, as the level of satisfaction is just average.

Keywords: corona virus; COVID-19; disease; pandemic, economic stability; socio-economic; wellbeing, structural-equation.

DOI: 10.7176/IAGS/68-04

Publication date:July 31^st 2020