The Impact of COVID-19 Vaccination on Countries' Economic Recovery: Taking the OECD as an Example

Yunjian Tan

doi:10.54691/bcpbm.v35i.3314

Authors

Yunjian Tan

DOI:

https://doi.org/10.54691/bcpbm.v35i.3314

Keywords:

COVID-19; Vaccine; GDP; Economic Recovery; Difference-in-Difference.

Abstract

In 2019, the worldwide health system was significantly impacted by the COVID-19 pandemic which caused a chain reaction to all aspects of society. The epidemic has raised concerns about the upcoming economic crisis and recession. Despite public choice, budget constraints and many other factors, the formation of social immune barriers through mass vaccination is still one of the most effective measures to prevent and control the epidemic. Taking countries in Organization for Economic Co-operation and Development (OECD) for example, this paper aims to explore the relationship between vaccination rate and national economic growth. In 2020, almost all major economies in the world will have negative GDP growth. After countries took strict prevention and control measures and financial remedies, the economy began to improve. Using Difference-in-Difference (DID) method, qualitative and quantitative research helps us intuitively understand the impact of vaccination on national economic, and the regression results confirm the positive effect of vaccines on economic recovery. This conclusion provides some theoretical support for the policies of countries to promote COVID-19 vaccination.

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