Globalization has considerably increased the movement of people and goods around the world, which constitutes a key channel of viral infection. Increasingly close economic links between countries speeds up the transfer of goods and information, and the knock-on effect of economic crises, but also the transmission of diseases. Foreign direct investment (FDI) and trade establish clear ties between countries of origin and destination, and it is along these chains that contagious phenomena can unfold. In this paper, we investigate whether countries’ centrality in both global production and trade network corresponds to higher COVID-19 infection and mortality rates. Merging data on EU-27 greenfield FDI and international trade with data on COVID-19 infections and deaths, we find that countries mostly exposed to the COVID-19 outbreak are those characterized by a higher eigenvector centrality. This result is robust to the use of an alternative measure of network centrality and to the inclusion of other possible confounding factors.

Linking FDI and trade network topology with the COVID-19 pandemic

Roberto Antonietti
;
2023

Abstract

Globalization has considerably increased the movement of people and goods around the world, which constitutes a key channel of viral infection. Increasingly close economic links between countries speeds up the transfer of goods and information, and the knock-on effect of economic crises, but also the transmission of diseases. Foreign direct investment (FDI) and trade establish clear ties between countries of origin and destination, and it is along these chains that contagious phenomena can unfold. In this paper, we investigate whether countries’ centrality in both global production and trade network corresponds to higher COVID-19 infection and mortality rates. Merging data on EU-27 greenfield FDI and international trade with data on COVID-19 infections and deaths, we find that countries mostly exposed to the COVID-19 outbreak are those characterized by a higher eigenvector centrality. This result is robust to the use of an alternative measure of network centrality and to the inclusion of other possible confounding factors.
File in questo prodotto:
File Dimensione Formato  
s11403-023-00393-w.pdf

accesso aperto

Descrizione: ADR_JEIC
Tipologia: Published (publisher's version)
Licenza: Creative commons
Dimensione 1.83 MB
Formato Adobe PDF
1.83 MB Adobe PDF Visualizza/Apri
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11577/3488179
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 1
  • ???jsp.display-item.citation.isi??? 1
social impact