Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 7th International Conference on Economic Management and Green Development
Series Vol. 41 , 10 November 2023
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Does the Easing of Restriction in Zero-COVID Policy Impact the Pharmaceutical Industrial Index?
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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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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
- 10 November 2023
- 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