Financial Development of the Turkish Pharmaceutical Sector During and After the Pandemic: Sector Panel Data Analysis for the Period 2018-2022

Abstract

This study examines the effects of the COVID-19 pandemic on the financial performance of the Turkish pharmaceutical industry in the period between 2018 and 2022. Financial indicators in the sector were examined and analyzed through the data set covering the periods before, during and after the pandemic. The hypotheses on which the research focuses predict the impact of the pandemic process on the pharmaceutical industry. The ADF unit root tests focused on four different financial indicators in the sector and it was determined that these indicators were stationary at normal levels. Hausman test results showed that a fixed-effect model is the most suitable option for the panel data model. However, upon detecting autocorrelation and heteroscedasticity problems in the model, the Panel GLS model was applied. Structural break analysis revealed that there were unexpected changes in the periods determined as the second quarter of 2020 and the first quarter of 2022. These periods mark time periods when the effects of the COVID-19 pandemic are particularly evident. Additionally, new recorded case data of COVID-19 shows how the pandemic's impact on the industry has changed over time. It was observed that pandemic conditions became evident in April and May 2020, and February 2022 marked the highest number of cases. This study aims to evaluate the future potential of the sector by examining in detail the changes in the financial performance of the Turkish pharmaceutical industry before, during and after the pandemic.