October 2023 issue contents

Islam Abdelbary*, Gamal Haikal** & Nourhan Boushra***


The COVID-19 pandemic has significantly impacted the global economy and financial markets, leading to a decline in global economic growth and financial market volatility. This study investigates the relationship between COVID-19 vaccination access and stock market returns, highlighting the importance of providing widespread and equitable access to COVID-19 vaccines to revive the global economy and stimulate financial markets. The study also emphasises the role of institutions in responding to health crises and promoting economic stability. Based on several panel data models, COVID-19 vaccine access alleviates the stock markets' fallout trend over our sample period, suggesting widespread and equitable vaccine access can stimulate financial markets. The analysis indicates that the level of financial liberalisation and quality of institutions play a critical role in relieving the outcomes of the pandemic and reinforcing the environment for private investments and financial activities. The study suggests that policymakers must implement effective measures to combat the virus, build public trust in the vaccine, and communicate effectively with citizens. The study also emphasises the need for equitable vaccine distribution and prioritises the most vulnerable populations. The paper contributes to the literature by providing empirical evidence on the impact of COVID-19 vaccination on global financial markets, highlighting the importance of equal vaccine access and the role of institutions and financial liberalisation in mitigating the pandemic's impact.

Keywords:Economic freedom , Financial markets, COVID-19, Governance, Inequality, Panel data, Vaccines