The Influence of Vaccination on Business Confidence during COVID-19 Pandemic

By Tran Phuoc Bao Minh (VNP 26)

Supervisor: Dr. Vu Thi Hong Nhung

Abstract:

At the time of this research, the COVID-19 pandemic has claimed more than 5 million lives and pushed the global economy into a deep recession with 97 million people around the world into poverty on less than $1.9 a day, accompanied by a remarkable increase in unemployment rate. Is there any way to reduce this negative impact on the economy? Keynes 1936 used the concept of the "animal spirit" to emphasize the importance of business confidence in understanding business cycle and economic fluctuations. So, what determines business confidence? This study found that vaccination is effective in increasing business confidence during the COVID-19 pandemic. Furthermore, we also found that the positive effect of vaccination on business confidence is even stronger when the lockdown policies is tightened. To the best of our knowledge, this is the first study to discover the nexus between vaccination and business confidence