التكامل الاقتصادي
Volume 10, Numéro 4, Pages 486-498
2022-12-31

Covid-19 And The Globalization Challenges



Authors : Mostefaoui Sofiane . Yousfat Ali .

Abstract

The increased production specialization between nations makes the supply chain at the international level more complicated and interconnected. This issue raises the dependency of the production process in terms of both manufacturing, logistics and delivery. In this context, the smoothly and harmonic movement of the supply chain according to the advantages brought by each nation under the globalization flagship is more than a necessity. Nevertheless, the outbreak of the COVID 19 poses challenges issues related to the efficiency of the international supply chain as strategy of the nations’ interconnection and a way to boost simultaneously their economic and social welfare. In this paper, we present a mathematical model in which we demonstrate that COVID-19 spread has negative spillovers on the aggregate investment, labor productivity and global supply chain. The model proves that the spread magnitude of COVID-19 exercises harmful effects on the investment capacity of the facilities and the propensity of the labor productivity.

Keywords

COVID-19 ; Globalization ; Investment; Labor Productivity; International Supply Chain

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