Is the level of development in a country a vital factor for coping with Covid-19?

Abstract

Covid-19, the virus that dominated 2020 was first detected in Wuhan, China in December 2019. The virus has since then spread to all countries in the world and has resulted in devastating effects worldwide among developed as well as developing countries. Countries' vulnerability to the virus is however one thing that differs, since developed countries have plenty more resources at their disposal, and generally a higher level of health and healthcare, which could have an effect on how well the countries are coping with the virus. This is also where the paper takes its starting point, where the aim of the study is to investigate whether the level of development in a country is a vital factor for coping with Covid-19. This is achieved by conducting a multiple regression analysis between Covid-19 cases, Covid-19 deaths, and indicators of development. The result suggests a mixed result, where the variation between the countries had an important effect. Some distinctive factors could however be identified, where the most interesting finding was that both GDP per capita and HDI were found negatively related to Covid-19 deaths per million, when controlling for important variables. Key words: Covid-19, level of development, economic output, health expenditures, HDI, general health, economic shock, developing and developed countries.