Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 41 , 10 November 2023


Open Access | Article

Does the Easing of Restriction in Zero-COVID Policy Impact the Pharmaceutical Industrial Index?

Jingyuan Xu * 1
1 Southwestern University of Finance and Economics

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 41, 122-129
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Jingyuan Xu. Does the Easing of Restriction in Zero-COVID Policy Impact the Pharmaceutical Industrial Index?. AEMPS (2023) Vol. 41: 122-129. DOI: 10.54254/2754-1169/41/20232055.

Abstract

After a policy of easing COVID-19 restrictions was issued in China in December 2022, many people were infected by the virus sooner or later, and medical resources became extremely scarce. This paper aims to investigate the relationship between the easing of restrictions in the Zero-COVID policy and the pharmaceutical industry index. The paper predicts that the policy will stimulate an increase in the pharmaceutical industry index. Using the ARIMA model, the paper finds that the predicted value is lower than the actual value, indicating that the policy indeed has a positive effect on the index price. Another discovery is that the index price generally exhibits a decreasing trend. The reason for this is that the index price had already reached a high point when COVID first occurred, and it would continue to decline due to overreacting phenomenon. Based on these results, the paper suggests that investors should not only consider the temporary stimulation but also need to be aware of the long-term price trend.

Keywords

COVID-19, ARIMA, pharmaceutical index

References

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10. Almurisi, S. H., Al Khalidi, D., AL-Japairai, K. A., Mahmood, S., Chilakamarry, C. R., Kadiyala, C. B. N., & Mohananaidu, K. (2020). Impact of COVID-19 pandemic crisis on the health system and pharmaceutical industry. Letters in Applied NanoBioScience, 10(2), 2298-2308.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-103-2
ISBN (Online)
978-1-83558-104-9
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/41/20232055
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated