Download pdf
The Impact of the Deregulation of Covid-19 on the Pharmaceutical Industry
- 1 Zhejiang University of Finance and Economics
* Author to whom correspondence should be addressed.
Abstract
The current COVID-19 has lasted for a long time, and the Chinese government has relaxed the control of the pandemic after many considerations. Numerous researches about the COVID-19's effects on the economy and business are currently available. But few studies are on the pharmaceutical industry and the Deregulation. Therefore, this paper selects the Pharmaceutical and Biological Full Benefit as the research object. And then uses the ARIMA model to perform time series fitting and prediction of the closing price series in the past period. By comparing the predicted and real values, how the Deregulation affected the stock price of the biopharmaceutical sector could be determined. After modeling analysis, it is concluded that a positive effect has been produced by the Deregulation on the stock price of the pharmaceutical industry. Further study shows that there is a short-term lag in the impact, and the relative growth rate is not large. And the impact has been observed with certain short-term nature through the prediction results. This paper innovatively uses stock price fluctuations as an insertion point to explore the impact of the Deregulation on the pharmaceutical industry, which has profound practical guiding significance. For Chinese policy makers, it is suggested that the country should cooperate with the improvement and upgrading of the pharmaceutical industry. For investors, it is suggested that they should maintain a more stable and positive wait-and-see attitude towards the pharmaceutical industry.
Keywords
COVID-19, re-opining, pharmaceutical industry, ARIMA
[1]. Jamir, I. (2020). Forecasting potential impact of COVID-19 outbreak on India's GDP using ARIMA model. SSRN.
[2]. M Ren Min, C Wang & H Yan. (2022). The impact of the new crown pneumonia pandemic on the stock price of my country's pharmaceutical industry——An empirical analysis based on the ARIMA model. Northern Economics and Trade (02), 93-96.
[3]. J Yao & L Zhang. (2022). Research on China's New Crown Pandemic Prevention and Control Policy——Based on the Perspective of National Governance Modernization. Humanities Magazine (03), 33-42.
[4]. L Liu. (2022). Research on the Impact of the New Crown Pandemic on the Stock Return Rate of my country's Pharmaceutical Industry (Master's Thesis, Qufu Normal University). https://kns.cnki.net/KCMS/detail/detail.aspx?dbname =CMFD202301&filename=1022032496.nh
[5]. Comprehensive Group of Joint Defense and Control Mechanism of the State Council. (2022). Notice on Further Optimizing and Implementing the Prevention and Control Measures of the COVID-19. https://www.gov.cn/xinwen/2022-12/07/content_5730443.htm
[6]. X Yang. (2022). Research on the Impact of Major Pandemic Events on Stock Price Fluctuations of Listed Biopharmaceutical Companies (Master's Thesis, Zhejiang University). https://kns.cnki.net/KCMS/detail/detail.aspx?dbname= CMFD202301&filename=1022507958.nh
[7]. Wang Qing, Wang Zhongli, Li Shixue & Xue Fuzhong. (2020). The short-term impact of the "new crown pneumonia" pandemic on China's stock market price fluctuations. Economic and Management Review (06), 16-27.
[8]. Z Zhang, S Zhu & F Lu. (2020). Research on the Impact Effect of the New Crown Pandemic on the Capital Market. Friends of Accounting (18), 131-137.
[9]. H Xu & H Pu. (2021). The Impact of the New Crown Pandemic on China's Stock Market——A Study Based on Event Research Method. Financial Forum (07), 70-80.
[10]. H Liu. (2022). The impact of the new crown pandemic on the stock prices of listed companies in China's pharmaceutical industry and the measurement of factors (Master's thesis, Dongbei University of Finance and Economics). https://kns.cnki.net/KCMS/detail/detail .aspx?dbname=CMFD202301&filename=1022067884.nh
[11]. Y Duan. (2020). The Impact of the New Crown Pneumonia Pandemic on my country's Stock Market——Based on the Empirical Analysis of the Pharmaceutical Industry. China Business Theory (18), 28-30.
[12]. K Zhang & Q Qian. (2020). Impact of the New Crown Pandemic on China's Economy and Policy Discussion—Evidence from Listed Companies. Tropical Geography (03), 396-407.
[13]. Abiad, A., Arao, R. M., & Dagli, S. (2020). The economic impact of the COVID-19 outbreak on developing Asia.
[14]. Barshikar, R. (2020). Covid 19–Impact and new normal for pharmaceutical industry (Part–I). Journal of Generic Medicines, 16(3), 112-119.
[15]. Mittal, S., & Sharma, D. (2021). The impact of COVID-19 on stock returns of the Indian healthcare and pharmaceutical sector. Australasian Accounting, Business and Finance Journal, 15(1), 5-21.
[16]. Sun, Y., Wu, M., Zeng, X., & Peng, Z. (2021). The impact of COVID-19 on the Chinese stock market: Sentimental or substantial? Finance Research Letters, 38, 101838.
[17]. Jena, P. K., & Mishra, P. K. (2022). Lockdown vs. Opening-Up of the Economy During the COVID-19 Pandemic and the Indian Stock Market. Asian Economics Letters, 3(Early View).
[18]. Almurisi, S. H., Al Khalidi, D., AL-Japairai, K. A., Mahmood, S., Chilakamarry, C. R., Kadiyala, C. B. N., & Mohananaidu, K. (2020). Impact of COVID 19 pandemic crisis on the health system and pharmaceutical industry. Letters in Applied NanoBioScience, 10(2), 2298-2308.
[19]. Z Wu & H Guo. (2023). An Empirical Analysis of the Development Opportunities of the Pharmaceutical Industry under the Post-pandemic Background. Cooperative Economy and Technology (11), 30-33.
[20]. F Yuan, P Yuan & Y Zheng. (2022). Research on the development opportunities of the biomedical industry under the new crown pandemic. Global Science and Technology Economic Outlook (11), 28-33.
Cite this article
Chen,Y. (2023). The Impact of the Deregulation of Covid-19 on the Pharmaceutical Industry. Advances in Economics, Management and Political Sciences,45,263-273.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).