题 目： The Impact of covid-19 on uk`s Economy and Policy Suggestions 学 院：

浙 江 科 技 学 院 本科毕业论文 文 献 综 述 (2022届) Literature Review 题 目： The Impact of COVID-19 on UK's Economy and Policy Suggestions 学 院： 经济与管理学院 专 业： International Economics and Trade 班 级： 2018级182班 学 号： 9160680019 学生姓名： Akbar Shonazarov 指导教师： Xiangdong Xu 完成日期： 2021年12月6日

《新冠疫情对英国经济的影响及政策建议》文献综述


The Impact of COVID-19 on UK's Economy and Policy Suggestions: A review of the Literature

【摘要】
【关键词】

Abstract:

Keywords:


1. Introduction
This section involves the literature review of the involved variables including independent variables, COVID-19 total cases, COVID-19 monthly cases, total deaths due to COVID-19 and the dependent variables economic policy uncertainty and net economic deficit in the context of United Kingdom. This section furthermore elaborates the research gaps regarding COVID-19 situation in the United Kingdom with respect to economic policy uncertainty and net economic deficit, with the formation of a theoretical framework for this study.

2. COVID-19 situation in UK and Economic policy uncertainty

According to the economic theories of decision-making under the situation of uncertainty, uncertain situations call for specific measures that must be taken under the influence of global pandemics like the pandemic of COVID-19, in order to maintain a positive and sustainable economic and social condition (Ahrens & Ferry, 2021; Becker & Gregory, 2020). The ongoing pandemic of COVID-19 is not only presenting the whole world with an international public health concern but this pandemic is also resulting in global economic crisis, an United Kingdom is no exception, countries around the world are facing economic uncertainties as a result of which the policymaking procedure for the economic and financial sectors has become very crucial and uncertain as well (Becker & Gregory, 2020; Brown & Rocha, 2020). Many experts and authors have also proposed that this pandemic might result in a significant global financial crisis, different policymakers and regulators around the globe are significantly researching regarding the upcoming financial crisis and different economic challenges that are going to be posed as a result of the pandemic of COVID-19 (Bryce, Ring, Ashby, & Wardman, 2020; Clarkson, Culvin, Pope, & Parry, 2020). Any kind of policymaking procedure is completely dependent upon stable conditions, policies can be made in an effective way, only when the related factors are reliable and stable as well, whereas, as a result of the situation created because of the pandemic of COVID-19, not only the economic but also the political, social, cultural and health related conditions are significantly uncertain (Clarkson et al., 2020; Davidescu, Apostu, & Stoica, 2021). All of these reasons pose a significant threat to the policy making procedures regarding the economy of the United Kingdom, depriving the country from any kind of economic certainty and proper economic research and planning (GEYİKCİ, 2021; Heald & Hodges, 2020). The number of the cases of COVID-19 are enhancing each day, the surge in the cases is causing enhanced number of monthly cases and total deaths as well, in such situation, not only the economic planning and policymaking is uncertain but also health related and political decision making and policy making is uncertain as well. Right now, in all of the countries all around the world, long run and the short run economic policy uncertainty that is generated as a result of the COVID-19 pandemic is a matter of significant concern for the business enterprises, the regulators, economic experts and different economic entities as well (Heald & Hodges, 2020; Heck et al., 2020). Posing that the different situations that are being caused as a result of the pandemic of COVID-19 highly and negatively impact the economical conditions, economy and the economic policy of different countries all around the world. According to some studies, there is a requirement of long term and short term policy responses, in order to regulate all of the important bodies of the different countries in order to respond to the severe pandemic condition created due to COVID-19 (Jeris & Nath, 2020). There have been several attempts that have already been made in order to understand the pandemic of COVID-19 along with its different impacts, however, it is now very important that the economic factor is studied in an isolated way. Countries are heavily dependent on their economic structure and economic conditions, some of the studies proposed that the economic disruptions that the pandemic is causing is leading towards contagion amplifiers that are going to destroy the overall economic structure and the economic condition all over the world (Koffman, Gross, Etkind, & Selman, 2020). Understanding of the impacts of the pandemic of COVID-19 is very important, in order to assess any kind of factor that can positively impact the economy and can lead towards certain economic policies, that can have positive impact on the economy condition as well (Li, 2020). It has been found out by experts that both monetary policies and the economic policies are going to play a very important role in the stability of the economic conditions of the countries all around the world during the pandemic of COVID-19 and after the shocks of this pandemic as well. However, the experts have found significant level of uncertainty during the formation of monetary policies as well along with the economic policies, posing that economic policy making procedure has become significantly difficult and important as a result of the adverse impacts of the pandemic (Li, 2020; Naeem, 2020a). The rising number of total cases and deaths are not only impacting the economic conditions but are also impacting the formation of the further economic policies, given the significantly high uncertainty being faced by the major governmental bodies all around the world. Furthermore, some of the studies revealed relationships between the high level of economic policy uncertainties and different commodities and the industries, as in, a study represents the relationship between the economic policy uncertainties and the oil prices in Russia. This uncertainty has significantly impacted the oil prices and has caused various fluctuations in it as well, Indirectly impacting other businesses as well (Naeem, 2020b; Olivia, Gibson, & Nasrudin, 2020; Ozili & Arun, 2020). Pricing is very crucial to economic policy making procedure, as all of the commodities, trading and businesses are significantly dependent upon the factor of pricing, this has been significantly impacted as well as a result of upsurge in the economic policy uncertainty, businesses, industries and various other sectors have been impacted as well, as a result of the impact on crucial factors (Samadi, Owjimehr, & Halafi, 2021). So, according to various studies, it has been found that there is short term, medium term and long term relationship present among the different impacts of the COVID-19 pandemic and the economic policy uncertainty all around the world. As the studies point out association between various sectors, commodities and the economic policy uncertainty, the drastic impacts on the economy have been predicted as well, So it is a factor of significant concern to exactly assess the impacts of the total cases of the pandemic of COVID-19 and the resultant total deaths due to the pandemic of COVID-19 on the economic policy uncertainty in the context of the United Kingdom (Jeris & Nath, 2020; Koffman et al., 2020). The gaps in the previous studies are that the previous studies have studied the impacts of COVID-19 and economic policy uncertainty in the context of a specific industry or a specific commodity, however, the previous studies have not specifically taken COVID-19 total cases, COVID-19 monthly cases and COVID-19 related total deaths along with the analysis of the economic policy uncertainty in the context of United Kingdom (Li, 2020; Naeem, 2020a). The study is going to fulfill these gaps by considering these factors with specific focus on the United Kingdom. On the basis of the discussion and previous literature regarding the variables, the following hypotheses are proposed:
H1: The impact of COVID-19 total cases on the economic policy uncertainty in the United Kingdom is significant.
H2: The impact of COVID-19 Monthly cases on the economic policy uncertainty in the United Kingdom is significant.
H3: The impact of Total deaths due to COVID-19 on the economic policy uncertainty in the United Kingdom is significant.