Global economic performance and natural resources commodity prices volatility: Evidence from pre and post COVID-19 era

Li Sun; Yang Wang

doi:10.1016/j.resourpol.2021.102393

Global economic performance and natural resources commodity prices volatility: Evidence from pre and post COVID-19 era

Resour Policy. 2021 Dec:74:102393. doi: 10.1016/j.resourpol.2021.102393. Epub 2021 Oct 7.

Authors

Li Sun^{1

2}, Yang Wang²

Affiliations

¹ School of Economics, Jilin University, Changchun, 130012, China.
² School of Economics, The Institute of American Studies, Jilin University, Changchun, 130012, China.

Abstract

The emergence of Covid-19 has created a global panic that affects global economic performance and causes natural resources commodity price volatility. In this regard, the current research study investigated the nexus of natural resource commodity price volatility and global economic performance from January 01, 2019, to July 01, 2021. Using the wavelet power spectrum and wavelet coherence approaches, the empirical findings reveal that only the natural resource commodity prices are vulnerable. However, no vulnerability has been observed for the global economic performance. Additionally, the wavelet coherence reveals that there is no long-run or the short run causal association between these two variables. Moreover, the Breitung-Candelon spectral Granger causality test confirms no causal relationship between natural resource commodity price volatility and global economic performance. Based on the empirical findings, this study provides some relevant policy implications.

Keywords: Breitung-candelon spectral granger causality; Covid-19; Global economic performance; Natural resource commodity price volatility.