The Effects of Pandemic Diseases on the World Economy (original) (raw)

Purpose-The purpose of this research is to review the recent literature of epidemics and to evaluate the potential economic effects of COVID-19 pandemic compared with SARS-COV and MERS-COV. Methodology-Impacts of previous epidemics on income of 16 selected countries were estimated for 2000-2015 within a panel econometric framework. Findings-SARS-COV has depreciating effects on all economies and its incidence had reduced average per capita income by almost 1.900 Dollars. Effects of MERS-COV were limited due to its contagion area. It has been understood that dispersed epidemics affect economies inversely. Conclusions-Labour demand of services has been reduced already. However, rising online shopping tendency and potential integration of agro-food and services sectors may lead compensation for the losses. Yet, in the apparent situation it is hard to talk about a potential recovery due to continuously declining income and rising unemployment.