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Covid-19, oil price and UK economic policy uncertainty: evidence from the ARDL approach

Department of Business Administration, Shahjalal University of Science and Technology, Sylhet, Bangladesh

Special Issues: Special Issue on the Economic and Financial Impact of “COVID-19”

This study attempts to investigate how the spread of coronavirus (COVID-19) influence the UK economic policy uncertainty. Using daily data ranging from 11 March 2020 to 7 May 2020, an ARDL model has been applied in this study to capture both the short-run and long-run impact of COVID-19 on economic policy uncertainty. Additionally, the influence of Brent oil price on economic policy uncertainty is also examined. Based on the ARDL result, it is found that both COVID-19 new cases and new deaths reported in the UK have a strong and positive association with the UK economic policy uncertainty in the long-run. However, Brent oil price shows an inverse connection with economic policy uncertainty in the long run.
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© 2020 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution Licese (http://creativecommons.org/licenses/by/4.0)

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