correlation between corona virus pandemic and Global Supply ChainEmpirical study of six countries

Abstract

This study aims to investigate the effect of the
COVID-19 pandemic on supply chain disruption
in six nations using weekly data from 01/02/2020
to 01/02/2022. The model we use in this study is
a dynamic conditional correlation (DCCGARCH) model. The results document that its
effect has been stronger since March 2020, when
the HWO announced that COVID-19 became a
pandemic. The outcome demonstrated also that
the dynamic conditional correlation is high
between total cases in Europe and the United
Kingdom, which reached 1 from March 1, 2020,
to February 1, 2022, which is greater than the
relationship between total cases in the United
Kingdom and China, and this is a result of the
distance or proximity of these countries between
them. However, the correlation between total
cases in Europe (TCeur) and the supply chain in
China (Sch) was low at the beginning of the
pandemic, which is the study period, and it started
to rise until June 2020, reaching 50%, then
decreasing after that period.