LAUSR

Spatial panel‐data models are estimated to identify the factors of the prevalence of the coronavirus outbreak in North Africa. Using daily data on the number of cases collected between March 2020 and December 2021, three types of general models are investigated, and they include spatial spillovers between the neighboring countries of the region. In one model the spatial dependence is accounted for by adding a spatial lag of the dependent variable (SAR model). In an alternative specification, spatially correlated error terms are considered in the model (SEM), and in the third model a spatial lag dependent variable and spatially correlated errors are both added (SAC). To deal with unobservable individual heterogeneity, random and fixed individual effects specification are investigated in each of these models. The results of the maximum likelihood and generalized method of moments' estimations show that the lift of travel restrictions had an important impact on the spike in the numbers of COVID‐19 cases in North Africa and that the effects of endogenous interactions between the countries are strongly significant. It is found that spatial spillovers and a change in the travel policy are the main factors that can explain the mechanism of spread the coronavirus pandemic in North Africa. However, more data on socio‐demographic and behavioral variables and on vaccination rates are needed to better understand what caused the recent surge in the number of infections in the region.