The Different Impact of Covid-19 Pandemic on Catering and Pharmaceutical Industry in China: Evidence from Time Series Model

Abstract

Covid-19 pandemic is a huge setback for the global economy. This essay investigates the distinct impacts of the COVID-19 pandemic on China’s catering and pharmaceutical industries using time series models. It highlights how the pandemic differently influenced these sectors, with the catering industry experiencing a significant downturn and the pharmaceutical industry showing a surge in demand for medical products and services. The paper employs indices to represent industry situations, analyzes stock prices’ volatility, and predicts closing prices without the pandemic’s impact. The study utilizes the ARIMA model for forecasting and empirical analysis, revealing how the pandemic accelerated trends in these industries and its varying effects on them. This research offers insights into industry-specific impacts of global crises and provides valuable perspectives for policymakers, investors, and researchers in understanding economic effects during health emergencies. The results indicated that the covid-19 pandemic had a negative impact on catering industry and the stock price was much lower than expected. While it had a relatively positive effects on pharmaceutical industry since the huge demand of medicine and other related supplies.