Dataset Information

Impact of COVID-19 on the quantile connectedness between energy, metals and agriculture commodities.

ABSTRACT: With many studies highlighting the heterogeneous impact of the COVID-19 pandemic on different commodity markets, this study provides evidence of quantile connectedness between energy, metals, and agriculture commodity markets before and during the COVID-19 outbreak. Since mean-based measures of connectedness are not necessarily suitable to measure connectedness in the crisis period, especially in the tails of the return distribution, thus in this study, we use the newly developed approach of quantile-based connectedness. The full-sample analysis results show that return shocks only propagate within the energy commodity group. The findings manifest that transmission of return spillovers is stronger in the left and right tails of the conditional return distribution. In addition, the results unveil that degree of tail-dependence between energy, metals, and agriculture commodities are time-varying. Meanwhile, our sub-sample analysis clearly shows that the commodity market return connectedness demonstrates a significant shift over time due to COVID-19 shocks. There is evidence of strong transmission of return shocks between energy, metals, and agriculture commodities during the COVID-19 fiasco. Finally, the results also illustrate that softs and livestock commodities hold significant diversification benefits for energy market investors.

SUBMITTER: Farid S

PROVIDER: S-EPMC8925278 | biostudies-literature | 2022 May

REPOSITORIES: biostudies-literature

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Impact of COVID-19 on the quantile connectedness between energy, metals and agriculture commodities.

Farid Saqib S Naeem Muhammad Abubakr MA Paltrinieri Andrea A Nepal Rabindra R

Energy economics 20220316

With many studies highlighting the heterogeneous impact of the COVID-19 pandemic on different commodity markets, this study provides evidence of quantile connectedness between energy, metals, and agriculture commodity markets before and during the COVID-19 outbreak. Since mean-based measures of connectedness are not necessarily suitable to measure connectedness in the crisis period, especially in the tails of the return distribution, thus in this study, we use the newly developed approach of qua ...[more]

PMID: 35313533

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Project description:ContextThe global COVID-19 pandemic has produced a variety of unanticipated shocks to farming and socio-economic systems around the world. In case of Senegal, the country was already facing number of challenges at the inception of the pandemic, including high rates of poverty, prevalence of food insecurity, combined with other biophysical and socioeconomic challenges faced generally in Sub-Saharan Africa.ObjectiveTo understand farmer perceptions of the potential impacts of COVID-19 on agricultural systems and social well-being of smallholder farmers in Senegal. Particular attention was given to potential vulnerabilities and resilience in the targeted farming systems.MethodsA survey was developed to better understand smallholder farmer perceptions regarding the anticipated impacts of COVID-19 on their agriculture practices and social well-being. The survey was administered (between June 5 and June 20) with smallholder farmers (n = 872) in 14 regions covering all agroecological zones. Variables of interest included perceptions of potential impact on farming systems, agricultural productivity, communities, economics, markets, labor, gendered division of labor, food security, and community well-being.Results and conclusionsAcross the three farming systems examined (cropping, livestock, and horticulture) significant majorities expressed concerns related to access to inputs, ability to plant (cropping, horticulture), reduction of yields (cropping, horticulture), ability to feed livestock, ability to sell livestock, and the ability to hire labor (horticulture). The majority of respondents also expressed concern that COVID-19 would make it more difficult to get enough food on a regular basis for their household (82.5%); that the markets where they purchase food will either be closed or significantly disrupted (79.5%); that the price of food would increase (73.5%); and the market where they sell their produce/livestock will be either closed or significantly disrupted (73.2%).SignificanceAnticipated impacts of COVID-19 on agriculture will be felt on both the biophysical aspects such as production and access to inputs and socioeconomic aspects such as access to labor, markets, or rapid shifts in demand. Results support the need to use farming systems approach to gather perceived and actual impacts of COVID-19 and warrants a more in-depth examination of agronomic and biophysical issues as well as the impact on the livelihoods and social well-being of families at community and household levels. Further examination will help identify the characteristics that strengthen smallholder farming systems resilience to adjust to anticipated and unanticipated shocks, such as COVID-19, to decrease the negative impacts and increase the rate of recovery.

Dataset Information

Impact of COVID-19 on the quantile connectedness between energy, metals and agriculture commodities.

Publications

Impact of COVID-19 on the quantile connectedness between energy, metals and agriculture commodities.

Similar Datasets

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