Economic Impact of Covid 19 on Bangladesh, India, and Pakistan

Abstract

The primary aim of this study was to explore the repercussions of the COVID-19 pandemic on developing nations, with a specific focus on Pakistan, Bangladesh, and India. To accurately portray the pandemic's impact on these economies, our research employed a model incorporating fixed effects. The findings revealed a notable decline in the per capita income of the countries affected by the COVID-19 pandemic. The existing economic downturn can be attributed to various factors, with a significant contributor being the reduced availability of labor. The prevalence of illnesses and adherence to public health guidelines led to a noticeable shortage of labor for active participation in economic activities. As a consequence, there was a decline in both productivity and economic output. Moreover, our analysis yielded a thought-provoking finding: a notable increase in fatalities had a discernible effect on the populace. The population experienced a significant decline as a result of the fatalities caused by the pandemic, an event that had complex economic ramifications. This decline in population paradoxically resulted in a rise in GDP per capita. By employing a fixed effects model, our research gains greater resilience, rendering it a valuable asset for policymakers, economists, and scholars endeavoring to navigate the intricate landscape of the effects of pandemics on emerging economies. In summary, the findings of this research stand to make a significant contribution to the wider comprehension of the repercussions of COVID-19 on these particular countries.