Effects of COVID-19 on trade flows: measuring their impact through government policy responses
This paper examines the impact of COVID-19 on bilateral trade flows using a state-of-the-art gravity model of trade. Using monthly trade data of 68 countries exporting across 222 destinations between January 2019 and October 2020, our results are threefold. First, we find a greater negative impact of COVID-19 on bilateral trade for those countries that were members of regional trade agreements before the pandemic. Second, we find that this negative impact of COVID-19 is negative and significant when we consider indicators related to governmental actions. Finally, this negative effect is more intense when exporter and importer country share identical income levels. In this case, the highest negative impact is found for exports between high-income countries.
BARBERO JIMENEZ Javier;
DE LUCIO FERNÁNDEZ Juan;
RODRIGUEZ-CRESPO Ernesto;
2021-12-01
PUBLIC LIBRARY SCIENCE
JRC124818
1932-6203 (online),
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0258356,
https://publications.jrc.ec.europa.eu/repository/handle/JRC124818,
10.1371/journal.pone.0258356 (online),
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