COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries

Jamiu Olamilekan Badmus; Ibraheem Monday Ojelade

doi:doi:10.11648/j.ijber.20221105.11

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COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries

Jamiu Olamilekan Badmus, Ibraheem Monday Ojelade

Published in International Journal of Business and Economics Research (Volume 11, Issue 5)

Received: 17 August 2022 Accepted: 31 August 2022 Published: 8 September 2022

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Abstract

The unprecedented shock posed by the current pandemic on the global economy has resulted in continuous efforts by the governments, health practitioners, and policymakers to abate it, which led to the implementation of several policy responses including the COVID-19 vaccination to curb the spread, severity, and recorded cases of the pandemic. Thus, this study evaluates the impact of COVID-19 vaccination on stock markets performance of selected African countries. The analysis of the study utilizes two variants of COVID-19 vaccination indicator, namely a dummy variable and a vaccine index. The regression model shows that the COVID-19 vaccination using a dummy variable, significantly improves the returns of stock markets in Botswana, Cote D’Ivoire, and Zambia. However, the vaccine index reveals significant positive impact of vaccination on the stock market returns in Kenya, Uganda, and Zambia. In addition, the wavelet coherence analysis is utilized to examine the relationship between the variables over time and frequency domain spectrum. The result shows that the COVID-19 vaccination proxy with vaccine index significantly granger causes the stock market of the selected countries except Tunisia. The findings of the study have policy implications on portfolio management and diversification as well as government policy responses to the global pandemic.

Published in	International Journal of Business and Economics Research (Volume 11, Issue 5)
DOI	10.11648/j.ijber.20221105.11
Page(s)	264-275
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

COVID-19 Vaccination, Stock Markets, Vaccine Index, Government Policy Response

References

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APA Style

Jamiu Olamilekan Badmus, Ibraheem Monday Ojelade. (2022). COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries. International Journal of Business and Economics Research, 11(5), 264-275. https://doi.org/10.11648/j.ijber.20221105.11

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ACS Style

Jamiu Olamilekan Badmus; Ibraheem Monday Ojelade. COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries. Int. J. Bus. Econ. Res. 2022, 11(5), 264-275. doi: 10.11648/j.ijber.20221105.11

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AMA Style

Jamiu Olamilekan Badmus, Ibraheem Monday Ojelade. COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries. Int J Bus Econ Res. 2022;11(5):264-275. doi: 10.11648/j.ijber.20221105.11

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@article{10.11648/j.ijber.20221105.11,
  author = {Jamiu Olamilekan Badmus and Ibraheem Monday Ojelade},
  title = {COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {5},
  pages = {264-275},
  doi = {10.11648/j.ijber.20221105.11},
  url = {https://doi.org/10.11648/j.ijber.20221105.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221105.11},
  abstract = {The unprecedented shock posed by the current pandemic on the global economy has resulted in continuous efforts by the governments, health practitioners, and policymakers to abate it, which led to the implementation of several policy responses including the COVID-19 vaccination to curb the spread, severity, and recorded cases of the pandemic. Thus, this study evaluates the impact of COVID-19 vaccination on stock markets performance of selected African countries. The analysis of the study utilizes two variants of COVID-19 vaccination indicator, namely a dummy variable and a vaccine index. The regression model shows that the COVID-19 vaccination using a dummy variable, significantly improves the returns of stock markets in Botswana, Cote D’Ivoire, and Zambia. However, the vaccine index reveals significant positive impact of vaccination on the stock market returns in Kenya, Uganda, and Zambia. In addition, the wavelet coherence analysis is utilized to examine the relationship between the variables over time and frequency domain spectrum. The result shows that the COVID-19 vaccination proxy with vaccine index significantly granger causes the stock market of the selected countries except Tunisia. The findings of the study have policy implications on portfolio management and diversification as well as government policy responses to the global pandemic.},
 year = {2022}
}

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TY  - JOUR
T1  - COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries
AU  - Jamiu Olamilekan Badmus
AU  - Ibraheem Monday Ojelade
Y1  - 2022/09/08
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221105.11
DO  - 10.11648/j.ijber.20221105.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 264
EP  - 275
PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.ijber.20221105.11
AB  - The unprecedented shock posed by the current pandemic on the global economy has resulted in continuous efforts by the governments, health practitioners, and policymakers to abate it, which led to the implementation of several policy responses including the COVID-19 vaccination to curb the spread, severity, and recorded cases of the pandemic. Thus, this study evaluates the impact of COVID-19 vaccination on stock markets performance of selected African countries. The analysis of the study utilizes two variants of COVID-19 vaccination indicator, namely a dummy variable and a vaccine index. The regression model shows that the COVID-19 vaccination using a dummy variable, significantly improves the returns of stock markets in Botswana, Cote D’Ivoire, and Zambia. However, the vaccine index reveals significant positive impact of vaccination on the stock market returns in Kenya, Uganda, and Zambia. In addition, the wavelet coherence analysis is utilized to examine the relationship between the variables over time and frequency domain spectrum. The result shows that the COVID-19 vaccination proxy with vaccine index significantly granger causes the stock market of the selected countries except Tunisia. The findings of the study have policy implications on portfolio management and diversification as well as government policy responses to the global pandemic.
VL  - 11
IS  - 5
ER  -

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Author Information

Jamiu Olamilekan Badmus

Department of Economics, Tai Solarin University of Education, Ijebu Ode, Nigeria
Ibraheem Monday Ojelade

Department of Computer Science, Austin Peay State University, Clarksville, Tennessee

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APA Style

Jamiu Olamilekan Badmus, Ibraheem Monday Ojelade. (2022). COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries. International Journal of Business and Economics Research, 11(5), 264-275. https://doi.org/10.11648/j.ijber.20221105.11

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ACS Style

Jamiu Olamilekan Badmus; Ibraheem Monday Ojelade. COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries. Int. J. Bus. Econ. Res. 2022, 11(5), 264-275. doi: 10.11648/j.ijber.20221105.11

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AMA Style

Jamiu Olamilekan Badmus, Ibraheem Monday Ojelade. COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries. Int J Bus Econ Res. 2022;11(5):264-275. doi: 10.11648/j.ijber.20221105.11

Copy | Download

@article{10.11648/j.ijber.20221105.11,
  author = {Jamiu Olamilekan Badmus and Ibraheem Monday Ojelade},
  title = {COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries},
  journal = {International Journal of Business and Economics Research},
  volume = {11},
  number = {5},
  pages = {264-275},
  doi = {10.11648/j.ijber.20221105.11},
  url = {https://doi.org/10.11648/j.ijber.20221105.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20221105.11},
  abstract = {The unprecedented shock posed by the current pandemic on the global economy has resulted in continuous efforts by the governments, health practitioners, and policymakers to abate it, which led to the implementation of several policy responses including the COVID-19 vaccination to curb the spread, severity, and recorded cases of the pandemic. Thus, this study evaluates the impact of COVID-19 vaccination on stock markets performance of selected African countries. The analysis of the study utilizes two variants of COVID-19 vaccination indicator, namely a dummy variable and a vaccine index. The regression model shows that the COVID-19 vaccination using a dummy variable, significantly improves the returns of stock markets in Botswana, Cote D’Ivoire, and Zambia. However, the vaccine index reveals significant positive impact of vaccination on the stock market returns in Kenya, Uganda, and Zambia. In addition, the wavelet coherence analysis is utilized to examine the relationship between the variables over time and frequency domain spectrum. The result shows that the COVID-19 vaccination proxy with vaccine index significantly granger causes the stock market of the selected countries except Tunisia. The findings of the study have policy implications on portfolio management and diversification as well as government policy responses to the global pandemic.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - COVID-19 Vaccination and Stock Markets Performance: Empirical Evidence from African Countries
AU  - Jamiu Olamilekan Badmus
AU  - Ibraheem Monday Ojelade
Y1  - 2022/09/08
PY  - 2022
N1  - https://doi.org/10.11648/j.ijber.20221105.11
DO  - 10.11648/j.ijber.20221105.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 264
EP  - 275
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20221105.11
AB  - The unprecedented shock posed by the current pandemic on the global economy has resulted in continuous efforts by the governments, health practitioners, and policymakers to abate it, which led to the implementation of several policy responses including the COVID-19 vaccination to curb the spread, severity, and recorded cases of the pandemic. Thus, this study evaluates the impact of COVID-19 vaccination on stock markets performance of selected African countries. The analysis of the study utilizes two variants of COVID-19 vaccination indicator, namely a dummy variable and a vaccine index. The regression model shows that the COVID-19 vaccination using a dummy variable, significantly improves the returns of stock markets in Botswana, Cote D’Ivoire, and Zambia. However, the vaccine index reveals significant positive impact of vaccination on the stock market returns in Kenya, Uganda, and Zambia. In addition, the wavelet coherence analysis is utilized to examine the relationship between the variables over time and frequency domain spectrum. The result shows that the COVID-19 vaccination proxy with vaccine index significantly granger causes the stock market of the selected countries except Tunisia. The findings of the study have policy implications on portfolio management and diversification as well as government policy responses to the global pandemic.
VL  - 11
IS  - 5
ER  -

Copy | Download