Investigating the effects of COVID-19 and public health expenditure on global supply chain operations: an empirical study

Abstract

This fresh examination was a thought-provoking area that was required to be undertaken and to fill this gap, the researchers have examined the impact of Covid-19 and health expenditure on the global supply chain by utilizing balanced panel data for the period from January 2020 to June 2020. This study utilized a random effect, fixed effect, GMM, and FGLS approach. The outcomes of COVID-19 demonstrate a significant negative influence as per the FGLS model, whereas the health expenditure demonstrates a significant negative effect on the global supply chain under both the dynamic models i.e. GMM and FGLS. As far as manufacturing value-added is concerned it indicates a positive and significant influence on the global supply chain according to the FGLS model whereas, last but not least the logistics performance index has a significant positive effect on the global supply chain according to the results of GMM and FGLS models respectively. The global supply chain is the lifeline for the global economy; thus, it is suggested that under COVID-19 pandemic situation policymakers need to react quickly and take suitable policy actions to deal with this unprecedented pandemic driven economic crises and further the cross-border trading activities should not be stopped, rather governments should formulate smart lockdown strategies.