The way COVID-19 test eases the trade-off between life and livelihoods

As countries in the developing world have to expand vaccinations in the face of new strains and variations Smart containment can reduce the tension between life and livelihoods.

In the initial discussion about COVID-19, nations were anticipated to be faced with an issue of flattening the pandemic curve on one side, while reducing the recession curvatures on the contrary.

If we investigate further, we see that both restrictions on mobility and open COVID-19 testing guidelines aid in preventing the spread of infection, particularly when introduced early in the outbreak.

See the source image

Image Source: Google

Our results demonstrate that mobility restrictions or shutdowns have a pronounced negative impact on economic development. However, tests are positively (though less strongly) related to output growth across nations even after adjusting for the rate of mortality and the frequency of locking downs.

In reality, by allowing countries to reduce their shutdowns but not compromise on the need for containment, COVID testing could have contributed indirectly to an 0.6 percentage point increase in the rate of economic growth.

It is possible that the test could have also increased the confidence of individuals to go out and get involved in economic activities and could have added 0.6 percent to the growth.

Testing has positively indirect impacts on growth. It could possibly have positive direct impacts, through aiding in the relaxation of private-precautionary behavior.