Do major health shocks affect the interconnectedness of E-commerce and electronic payment markets? a regional analysis

Abstract In view of the recent pandemic and its associated impact, this study examines relationship between e-commerce mobile/electronic payment markets by utilizing two indices as proxies these market developments. The employed DCC-GARCH modeling, Hacker–Hatemi bootstrap causality test, Diebold–Yilmaz volatility spillover analysis a modeling incorporating COVID19 related death statistics three regions: America, Europe Asia. results show that while display very high time-varying correlations across years, significant causal is only found during pandemic. Causality runs from index to index. Volatility further supports finding. Interestingly, tends become net transmitter in period. When we incorporate regional on cases deaths index, find have effect returns. This result may be rationalized relative tightness compared America Likewise, demographic characteristics might another potential driver for our findings.