Why Do Some Countries Have More COVID-19 Cases Than Others? Evidence from 70 Most Affected Countries Sans China

Using data from 70 of the most COVID-19 affected countries, this paper attempts to explain the cross-country variations in the number of officially confirmed COVID-19 positive cases. The findings indicate that regional characteristics play an essential role. Percent of people living in the urban area, number of tests, air passenger transport also come out as determinants with substantial influence. Besides, the impacts of trade relationships with China (a proxy for the degree of interaction with the country) and per capita health expenditure appears to be noteworthy. Differences in temperature are found to have no appreciable impact. Also, factors such as the relative importance of health in national policy, the quality of life, and the quality of governance fail to register any vital influence. The study does not find any evidence of endogeneity of the total number of tests conducted.