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The Economics of the COVID-19 Pandemic in Poor Countries

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  • Miguel, Edward
  • Mobarak, Ahmed Mushfiq
Abstract
The COVID-19 pandemic has upended health and living standards around the world. This article provides an interim overview of these effects, with a particular focus on low- and middle-income countries (LMICs). Economists have explained how the pandemic is likely to have different consequences for LMICs and demands distinct policy responses compared to those of rich countries. We survey the rapidly expanding body of empirical research that documents the pandemic's many adverse economic and noneconomic effects in terms of living standards, education, health, and gender equality, which appear to be unprecedented in scope and scale. We also review research on successful and failed policy responses, including the failure to ensure widespread vaccine coverage in many LMICs, which is needed to end the pandemic. We close with a discussion of implications for public policy in LMICs and for the institutions of international governance, given the likelihood of future pandemics and other major shocks (e.g., climate).

Suggested Citation

  • Miguel, Edward & Mobarak, Ahmed Mushfiq, 2022. "The Economics of the COVID-19 Pandemic in Poor Countries," Department of Economics, Working Paper Series qt0191q2qs, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    • Handle: RePEc:cdl:econwp:qt0191q2qs
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    8. Brunckhorst, Ben & Cojocaru, Alexandru & Kim, Yeon Soo & Kugler, Maurice, 2024. "Long COVID: The evolution of household welfare in developing countries during the pandemic," World Development, Elsevier, vol. 175(C).
    9. Dang, Hai-Anh H. & Nguyen, Cuong Viet & Carletto, Calogero, 2023. "Did a successful fight against COVID-19 come at a cost? Impacts of the pandemic on employment outcomes in Vietnam," World Development, Elsevier, vol. 161(C).
    10. Bundervoet, Tom & Dávalos, Maria E. & Garcia, Natalia, 2022. "The short-term impacts of COVID-19 on households in developing countries: An overview based on a harmonized dataset of high-frequency surveys," World Development, Elsevier, vol. 153(C).
    11. Abate, Gashaw T. & de Brauw, Alan & Hirvonen, Kalle & Wolle, Abdulazize, 2023. "Measuring consumption over the phone: Evidence from a survey experiment in urban Ethiopia," Journal of Development Economics, Elsevier, vol. 161(C).
    12. Rudin-Rush, Lorin & Michler, Jeffrey D. & Josephson, Anna & Bloem, Jeffrey R., 2022. "Food insecurity during the first year of the COVID-19 pandemic in four African countries," Food Policy, Elsevier, vol. 111(C).
    13. Tsai, I-Chun & Chen, Han-Bo & Lin, Che-Chun, 2024. "The ability of energy commodities to hedge the dynamic risk of epidemic black swans," Resources Policy, Elsevier, vol. 89(C).
    14. Hardy, Morgan & Kagy, Gisella & Demeke, Eyoual & Witte, Marc & Meyer, Christian Johannes, 2024. "The impact of firm downsizing on workers: Evidence from Ethiopia’s ready-made garment industry," World Development, Elsevier, vol. 176(C).
    15. Dang, Hai-Anh H & Salehi-Isfahani, Djavad & Do, Minh N.N., 2024. "The Impacts of COVID-19 on Female Labor Force Participation in Iran," IZA Discussion Papers 17001, Institute of Labor Economics (IZA).
    16. Contreras , Ivette & Khamis, Melanie & Newhouse, David & Weber, Michael, 2023. "How Did Countries Respond to the COVID-19 Crisis? Emerging Patterns on Jobs-Relates Policies," Jobs Group Papers, Notes, and Guides 32579893, The World Bank.
    17. Hai-Anh H. Dang & Cuong Viet Nguyen, 2024. "Agricultural Production as a Coping Strategy during the Covid-19 Pandemic? Evidence from Rural Viet Nam," Working Papers DP-2023-23, Economic Research Institute for ASEAN and East Asia (ERIA).
    18. Zhong, Mingli & Braga, Breno & McKernan, Signe-Mary & Hayward, Mark & Millward, Elizabeth & Trepel, Christopher, 2024. "Impacts of COVID-19-era economic policies on consumer debt in the United Kingdom," Journal of Economics and Business, Elsevier, vol. 129(C).
    19. Thanh, Pham Tien & Tram, Nguyen Hoang Mai & Tung, Le Thanh, 2024. "Educational inequality during the COVID-19 pandemic in Vietnam: Implications for disadvantaged children," Children and Youth Services Review, Elsevier, vol. 156(C).
    20. Arpit Gupta & Anup Malani & Bartosz Woda, 2021. "Inequality in India Declined During COVID," NBER Working Papers 29597, National Bureau of Economic Research, Inc.
    21. Mahreen Mahmud & Emma Riley, 2023. "Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households," Review of Economics of the Household, Springer, vol. 21(1), pages 19-36, March.
    22. Berniell, Inés & Gasparini, Leonardo & Marchionni, Mariana & Viollaz, Mariana, 2023. "Lucky women in unlucky cohorts," Journal of Development Economics, Elsevier, vol. 161(C).
    23. Carlos F. Gould & Ajay Pillarisetti & Lisa M. Thompson & Sonakshi Saluja & Vagisha Nandan & Johannes Urpelainen, 2023. "Using high-frequency household surveys to describe energy use in rural North India during the COVID-19 pandemic," Nature Energy, Nature, vol. 8(2), pages 169-178, February.
    24. Madeline Duhon & Lia Fernald & Joan Hamory & Edward Miguel & Eric Ochieng & Michael W. Walker, 2024. "Intergenerational Human Capital Impacts and Complementarities in Kenya," NBER Working Papers 32617, National Bureau of Economic Research, Inc.
    25. Dagher, Leila & abboud, ali & sidani, ola & Abi Younes, Oussama, 2022. "For Inclusive and Fair Covid-19 Socio-Economic Recovery Measures in Lebanon: Synthesis Report," MPRA Paper 116132, University Library of Munich, Germany.

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    More about this item

    Keywords

    Economics; Applied Economics; Economic Theory; Prevention; Generic health relevance; COVID-19; pandemics; economic development; public health; low- and middle-income countries; LMICs; Applied economics; Economic theory;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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