Investigating the Impact of Financial Inflows and Logistics Performance on Economic Growth Under the Shadow of Pandemic Crises: Empirical Analysis Using Dynamic Panel Estimation

Abstract

COVID-19 pandemic has severed the rate of economic growth almost in every country around the globe. The magnitude has been different due to the precondition of economic activities and severity for the speed of communicable disease spread. The developed, developing, and under developing countries by regulation and lockdowns can stop the spread. However, the measures slowdown to the economic activities. The world is still passing through a difficult situation, where many countries since March 2020 still face the 2nd and 3rd wave of the pandemic. The current research is an effort to bring forward insight into economic growth relationships, foreign direct investment, and logistic performance under the shadow of COVID-19 pandemic. For empirical testing, dynamic panel GMM (generalized method of moments) was used on data of forty-one countries. The findings show that higher FDI inflows and logistics performance spur international trade, while health expenditure and communicable diseases create pressure on economic growth. This study will help managers and policymakers to formulate effective policies for a global and local pandemic.