Article Analysis | Assignment-1

Running head: ARTICLE ANALYSIS
Article Analysis
Name of the Student
Name of the University
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1ARTICLE ANALYSIS
Table of Contents
1. Economic impacts of Wuhan 2019‐nCoV on China and the world............................................2
2. How a Virus Pandemic Led to a Toilet Paper Shortage..............................................................3
3. What's behind Saudi Arabia's oil price war with Russia?...........................................................4
4. New OECD estimates suggest a 22% hit to Australia’s economy..............................................6
5. Coronavirus lockdown: India grapples with migrant workers’ exodus.......................................7
Reference.........................................................................................................................................9

2ARTICLE ANALYSIS
1. Economic impacts of Wuhan 2019‐nCoV on China and the world
Author: Foster K. Ayittey, MatthewK. Ayittey, Nyasha B. Chiwero, Japhet S. Kamasah and
Cristian Dzuvor
Journal of Medical Virology, Wiley, March, 2020
https://www.researchgate.net/profile/Foster_Ayittey/publication/
339209152_Economic_Impacts_of_Wuhan_2019-nCoV_on_China_and_the_World/links/
5e4cb74e299bf1cdb935729f/Economic-Impacts-of-Wuhan-2019-nCoV-on-China-and-the-
World.pdf
Summary
The article speaks about the probable impact on the economy of China and other parts of
the world due to outbreak of the novel coronavirus. The outbreak started in the city of Wuhan
which is considered to the financial hub or business center of the central China. With GDP,
growth of the city more than whole of China depicts the contribution of the city to the economy.
Thus, outbreak of the virus would impact the business in the city. To stop the outbreak from
spreading further the city and other parts of the country are under complete lockdown causing
business and production to halt for long time (Khan et al. 2020). Economy of China is the second
largest in the world and it contributes 16.3% to global GDP. The outbreak majorly hamper the
stock market, tourism and automotive sector. Thus along with fall in growth of China whole
world will suffer.
Reflective
The topic in the article shows how a pandemic like novel Coronavirus could impact the
economy of a country and economy of the world (Ahani and Nilashi 2020). It shows how
continuous production is necessary for growth. In addition to that, pandemics or outbreak of
diseases hampers the efficient use of resources. Pandemics act like a natural disaster but slowly.
It is necessary to lockdown the city or the place where a virus outbreak occurs to stop its spread

3ARTICLE ANALYSIS
(Fernandes 2020). However, to do so all the businesses operating in the city needed to be
stopped. The complete shutdown breaks the supply chain and thus production is hampered.
Services get stopped and if this continues, then the cost burden of companies increase and thus
job cuts are done to reduce cost. This further leads to decline in come of the people and
aggregated demand in the economy along with aggregate supply declines (Ball, Sadka and Tseng
2016). Continuous fall in these two factors eventually leads to reduction of total output if the
economy and pushes it to recession. Therefore, the concern of the article of slowing economy
due to outbreak of the novel coronavirus is justified.
2. How a Virus Pandemic Led to a Toilet Paper Shortage
Author: Brielle Jaekel
Supply and Demand Chain Executive, March 19, 2020
https://www.sdcexec.com/warehousing/blog/21123125/how-a-virus-pandemic-led-to-a-toilet-
paper-shortage
Summary
The article speaks about the shortage of toilet paper occurred due to outbreak of the
Coronavirus disease. The article focuses on the condition of the US on advent of Coronavirus
spread across the country. In order to contain the spread of the virus the US has used the policy
of isolation and lockdown so that no people comes out of the home even for work and maintain
social distancing. Considering, unexpected condition and having no idea of the future people
started to sock all the daily necessities as much as possible to lower the need to getting out of the
home. Thus, sudden rise in the demand for toilet paper has put pressure on the supply chain.
People are purchasing around 6 months toilet paper at once causing shortage of supply in the

4ARTICLE ANALYSIS
market. The article however, suggests that it is not actually an increase in total demand. Rather, it
is a case of over purchase due to lockdown panic.
Reflective
The article shows that how panic creates unnecessary demand and puts pressure on the
market. In this way, a pseudo increase in market demand of product occurs (Columbus 2020).
Due to sudden purchase of a product like toilet in bulks forwards a wrong message to the
producers. During this period, it is hard to find the actual rise in demand for a product and toilet
paper in this case. This action may also lead to the rise in price of the product even though there
is no actual rise in demand of product. The rise in price occurs due to the clearing out of total
stock. However, when all the consumers have stocked their required amount toilet paper there
will be no further demand for the toilet paper for upcoming few months (Ruis Estrada, Park and
Lee 2019). Hence, there will occur over supply then as no one is buying toilet paper. This would
mean that there is shortage of toilet paper for the short run for over purchase. Therefore, in the
long run price of toilet paper will come down to its initial level. Thus, the shortage in toilet paper
occurred due to outbreak of Coronavirus is short term and long term demand for the toilet paper.
3. What's behind Saudi Arabia's oil price war with Russia?
Aljazeera, 15th March, 2020
https://www.aljazeera.com/programmes/countingthecost/2020/03/saudi-arabia-oil-price-war-
russia-200315114308947.html
Summary
The concern of the article is the oil price war between the Saudi Arabia and Russia. As
per the article, this oil price war has led to the highest fall of oil price after the fall of oil price

5ARTICLE ANALYSIS
during the oil price. Saudi Arabia and Russia worked together for last three years to keep the
price of oil stable. However, due to the outbreak of Coronavirus, China the largest oil importer
refused to take any oil supplies from Saudi Arabia. Consequently, the number supply of oil
increased putting downward pressure on oil price. Saudi Arabia wanted to lower the supply by
cutting 1.5 million barrels per day but Russia did not support. This led to the oil price war
between the two countries and it has been estimated that oil price may get as low as $20 per
barrel. However, it not possible to sustain at this price because both of the countries need much
higher prices to balance their budget.
Reflective
The article relates to two theories one if demand and supply and the other is game theory.
Reason for the oil price fall can be described firstly by fall in demand which occurred due to
China’s decision to not buy oil during the time of Coronavirus (Rodrigues and Wijermars 2016).
Secondly, the price rise occurs due to non-cooperation of Russia. Russia did not agree to the oil
supply cut and thus to keep their market Saudi Arabia increased supply causing price to fall.
Therefore, in this case price falls due to both demand side and supply side impacts. Firstly,
China’s decision of not purchasing oil caused demand to fall which with induced effect led to fall
in price of oil. Again, with rise in supply owing to the price war, oil price declines again.
However, if this price war does not end soon then the impact of this on both the countries Saudi
Arabia and Russia would get affected adversely. Thus, the only remedy is to lower the supply
since demand will not increase due to the outbreak of the Coronavirus (Maijama’a et al. 2020).
Both Saudi Arabia and Russia should take measures to reduce supply of oil in order to increase
the oil price to the level where budget is balanced and no country along with the global economy
faces any adverse economic pressure.

6ARTICLE ANALYSIS
4. New OECD estimates suggest a 22% hit to Australia’s economy
The Conversation, 30th March, 2020
https://theconversation.com/new-oecd-estimates-suggest-a-22-hit-to-australias-economy-135026
Summary
The topic of the article relates to the estimation of the New OECD regarding the
economic impact of Covid-19 on Australia. According to new OECD the business that deals with
public face to face would be hurt the most. The businesses include retail services, airlines, food
and accommodation, tourism, real estate agents and arts and recreation. Most of the sectors
would face complete shutdown and some would be partially shut down. The measure taken to
control Covid-19 is maintaining social distancing which further leads to lockdown. It is
estimated that a months of lockdown cost 2% of Australia’s GDP and thus if it continues then in
one year time 22% of GDP of the country would get depleted which is lowest than the recession
Australia faced after World War II. However, the estimates does not put enough light on the
impact on the employment sector which is assumed to get hurt more adversely.
Reflective
It can be understandable from article that how the lockdown causing due to outbreak=k of
Covid-19 could affect the economy of Australia adversely by stopping operation of various
businesses that demands physical presence of consumers (Ozili and Arun 2020). The shutdown
or staying non-operational for a prolong period of time due to lockdown would lower the
business activities. The lockdown if continues for a long time say 6 months then many small
firms related to the businesses like tourism, restaurant and retail may shutdown due to piling up

7ARTICLE ANALYSIS
loss and debt burden. Hence, it is obvious that continuous loss of business activities would lower
the output of the economy and the GDP of the country thus falls. Therefore, it can be said that
the persistent lockdown has the ability to push any country in the world like Australia into
recession earlier or later. The article has emphasized on the overall economic impact of
lockdown on the Australia as the estimation by new OECD does not account for the impact on
the employment and social sector (Shan and Tang 2020). However, it is obvious that with fall in
business activities there will be adverse impact on the employment sector.
5. Coronavirus lockdown: India grapples with migrant workers’ exodus
Aljazeera, 28th March, 2020
https://www.aljazeera.com/news/2020/03/coronavirus-lockdown-india-grapples-migrant-
workers-exodus-200328151304900.html
Summary
The article speaks about the impact of Coronavirus lockdown on the migrant workers in
India. Due to the lockdown, huge number of migrant workers got stuck in the capital of the
nation, New Delhi. The workers are engaged in informal sector jobs like labours in construction
project, housekeeping, taxi drivers, sweepers, gate keepers and many more. After the
announcement of the lockdown and all these migrant workers started to return to their homes.
However, due to unavailability of bus or train they are unable to return and thus had to stay in the
roads of capital city or in highway sides. Many are trying to return home by walking. The main
concern here is that they have no job, no money and way to return home. Most of them are
fearing that before Coronavirus hunger will kill them despite government aids that seems
insufficient considering the number of stranded migrant workers.

8ARTICLE ANALYSIS
Reflective
The article showed that how lockdown impacts the employment sector if most of the
workers work in informal sector. In informal sector, there is no job security and in most of the
cases, wages are paid in daily or weekly basis. Most of the migrant workers stay in the place
work as they do not get enough payment to rent houses (Fang, Wang and Lang 2020). In addition
to that, there is no alternative source for them to earn money. Hence, with the lockdown they all
have lost their jobs (Dayrit and Mendoza 2020). Eventually, if the lockdown continues for more
than the said number of days then the condition will get much worse as many people will die of
hunger as they will be left with no money to buy food (Khan and Naushad 2020). In addition to
that, the many construction would stop due to lack of labours as all of them belong to this
migrant group of workers (Mohan and Bhattacharjee 2020). Hence, the real estate sector would
get hurt severely. Apart from the death tolls due to Coronavirus, there will be death tolls for
lockdown and the country has to bear high socio-economic cost for this.

9ARTICLE ANALYSIS
Reference
Ahani, A. and Nilashi, M., 2020. Coronavirus Outbreak and its Impacts on Global Economy: The
Role of Social Network Sites. Journal of Soft Computing and Decision Support Systems, 7(2),
pp.19-22.
Ball, R., Sadka, G. and Tseng, A., 2016, September. Aggregate Supply and Demand Shocks and
Asset Prices. In 27th Annual Conference on Financial Economics and Accounting Paper.
Columbus, S., 2020. Who Hoards? Honesty-Humility and Behavioural Responses to the 2019/20
Coronavirus Pandemic.
Dayrit, M. and Mendoza, R.U., 2020. Social Cohesion vs COVID-19. Available at SSRN
3555152.
Fang, H., Wang, L. and Yang, Y., 2020. Human Mobility Restrictions and the Spread of the
Novel Coronavirus (2019-nCoV) in China (No. w26906). National Bureau of Economic
Research.
Fernandes, N., 2020. Economic effects of coronavirus outbreak (COVID-19) on the world
economy. Available at SSRN 3557504.
Khan, N. and Naushad, M., 2020. Effects of Corona Virus on the World Community. Available
at SSRN 3532001.
Khan, S., Ali, A., Siddique, R. and Nabi, G., 2020. Novel coronavirus is putting the whole world
on alert. Journal of Hospital Infection, 104(3), pp.252-253.

10ARTICLE ANALYSIS
Maijama’a, R., Musa, K.S., Garba, A. and Baba, U.M., 2020. Corona Virus Outbreak and the
Global Energy Demand: A Case of People’s Republic of China. American Journal of
Environmental and Resource Economics, 5(1), pp.10-13.
Mohan, D. and Bhattacharjee, A., 2020. A lockdown is the health response to fight coronavirus,
but where is the economic plan?.
Ozili, P.K. and Arun, T., 2020. Spillover of COVID-19: impact on the Global
Economy. Available at SSRN 3562570.
Rodrigues, W. and Weijermars, R., 2016. Assessing the impact of two recessions on the oil and
gas industry: severity of declines and future outlook. first break, 34(1), pp.79-85.
Ruiz Estrada, M.A., Park, D. and Lee, M., 2019. How A Massive Contagious Infectious Diseases
Can Affect Tourism, International Trade, Air Transportation, and Electricity Consumption? The
Case of 2019 Novel Coronavirus (2019-nCoV) in China. The Case of.
Shan, C. and Tang, D.Y., 2020. The Value of Employee Satisfaction in Disastrous Times:
Evidence from COVID-19. Available at SSRN 3560919.