Research on the COVID-19 Epidemic’s Impact on China’s Catering Industry
DOI:
https://doi.org/10.54691/bcpbm.v34i.3051Keywords:
COVID-19; Catering industry; VAR and VEC; Policy suggestions.Abstract
The catering industry is an important part of the basic needs of people’s livelihood, with frequent foot traffic, a high concentration of people, and relatively closed space characteristics. The characteristics of the catering industry make it particularly vulnerable to the COVID-19 epidemic. This study examines quarterly data on the catering industry’s GDP, electricity consumption, and epidemic indicators in China from 2016-March to 2022-June by using correlation analysis, Granger causality testing, vector auto-regression, and vector error correction models. Fruitful findings are derived. (1) Catering industry’s GDP shows a significant positive correlation with electricity consumption, while there is a negative correlation with total cases, deaths, new cases, and deaths of the COVID-19 epidemic. (2) Catering industry’s electricity consumption, total cases, and new deaths from COVID-19 are Granger causes of the catering industry’s GDP. (3) The current COVID-19 outbreak will have a long-lasting negative impact on catering GDP for the next six months. Based on these findings, concrete policy recommendations are made to promote the catering industry, which should assist the industry in recovering from the outbreak of COVID-19.
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