The Impact of COVID-19 pandemic on country risk: An Empirical Evidence from Egypt Vs. UK | ||||
| المجلة العربية للإدارة | ||||
| Articles in Press, Accepted Manuscript, Available Online from 18 September 2022 PDF (345.9 K) | ||||
| Document Type: بحوث باللغة الإنجلیزیة | ||||
| DOI: 10.21608/aja.2022.152608.1295 | ||||
 View on SCiNiTO | ||||
| Authors | ||||
Rania Ramadan  1; hanan barakat2
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| 1The Egyptian Chinese University | ||||
| 2the Egyptian Chinese university | ||||
| Abstract | ||||
| This paper aims to examine the impact of the COVID-19 pandemic on the country risk in Egypt and the Uk in parallel with control variables; nominal effective exchange rate, and inflation rate. The vector error correction model (VECM) is used to examine both the short and long-term relationships between the variables over the period starting from February 2020 until June 2021. The study employs government bond spread yield as a proxy for country risk measures. For Egypt Model, the empirical findings showed that there is no long-run significant relationship between the covid-19, the exchange rate, and the country risk in Egypt, although there is a short-run relationship between the exchange rate and country risk. On the other hand, for UK model, the study discovers a long-run significant relationship between the covid-19, the exchange rate, the inflation rate, and the country’s risk. Whereas, In the short term, there is a relationship between inflation rate and country risk, but there is none between covid-19, exchange rate, and country risk. | ||||
| Keywords | ||||
| Country risk; Covid-19; Bond yield spread; Vector error correction Model | ||||
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