Abstract
The aim of this paper is to investigate the impact of Covid-19 on Amman Stock Exchange performance (ASE) in Jordan using the Auto Regressive Distributed Lag Model (ARDL) and daily observations over the period of January 3, 2021 to April 25, 2021. The variables included in this study are the ASE index, the Covid-19 positive cases, the Covid-19 death cases, the Covid-19 recovered cases, the world Oil prices and the Euro/JD exchange rate. The long-run results reveal that positive cases have negative effect on ASE performance, recovered cases and exchange rate have positive effects. The positive reaction of the performance of ASE to movements in exchange rate may be attributed to the fact that imports largely exceeds exports. Therefore, an appreciation of the JD makes imports less costly which goes in line with economic theory as gross consumption in Jordan is mainly attributed to foreign products. Furthermore, positive cases are also highly significant while death cases are not which could be attributed to the fact that positive cases may have spill-over effect while death cases may not. Also, the magnitude of positive cases is much larger than that of death cases. In the short-run, all variables except recovered cases cause the performance of ASE. The system adjusts in the current day to any short-run departure in the previous day from long-run equilibrium in the previous day, which confirms the evidence of the long-run cointegration relationship.
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kasasbeh, H., Alzoubi, M., Alsmadi, A.A., Al-dweik, A.F. (2022). The Impact of COVID-19 on Amman Stock Market (ASE) Performance: An ARDL Approach. In: Yaseen, S.G. (eds) Digital Economy, Business Analytics, and Big Data Analytics Applications. Studies in Computational Intelligence, vol 1010. Springer, Cham. https://doi.org/10.1007/978-3-031-05258-3_35
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