Health-Economic Determinants of COVID-19 Pandemic and Countries’ Efficiency

Abstract

This study examines the relationship between vaccination and inflation in battling the COVID-19 pandemic across nations. Data from 85 countries worldwide were collected from the Trading Economics (New York City, USA) website during the COVID-19 pandemic. First, a new theoretical model was proposed based on the economic and healthcare literature; then, a binary variable, inflation/vaccination% was developed according to the proposed theoretical model. The relationship between inflation/vaccination% and macroeconomic factors was examined using logistic regression. After that, the countries were ranked by minimising the inflation/vaccination% rate that measures a country’s efficiency in fighting the COVID-19 pandemic, thereby permitting governments to compare the performance of different countries. The findings show that a country with a higher gross domestic product growth rate and competitiveness index during the COVID-19 pandemic has a lower inflation/vaccination% ratio. The results of this study provide strong evidence that countries should mitigate a pandemic’s economic impact by managing vaccination programmes to control global inflation.