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

Xuanlong Qin (), Danish Iqbal Godil (), Muhammad Kamran Khan (), Salman Sarwat (), Sadaf Alam () and Laeeq Janjua ()
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Xuanlong Qin: Chang’an University
Danish Iqbal Godil: Business Studies Department, Bahria Business School, Bahria University Karachi Campus
Muhammad Kamran Khan: Northeast Normal University
Salman Sarwat: Benazir Bhutto Shaheed University Lyari
Sadaf Alam: Bahria University Islamabad Campus
Laeeq Janjua: Poznan University of Economics

Operations Management Research, 2022, vol. 15, issue 1, No 11, 195-207

Abstract: 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.

Keywords: COVID-19; Health expenditure; Logistics performance; Manufacturing industry (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s12063-020-00177-6

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