 The Impact of COVID-19 on Chinese trade and production: An empirical analysis of processing trade with Japan and the USMary Everett Hancock and Jesse Mora Journal of Asian Economics, 2023, vol. 86, issue C Abstract: The COVID-19 pandemic severely disrupted international trade, leading countries to grapple with product shortages and firms to experience major supply chain issues. These challenges increased production costs and significantly contributed to lower trade and higher inflation. In this paper, we examine the impact of COVID-19 on Chinese trade through its two main trading partners: Japan and the US. By differentiating products by product type and processing status, we find evidence that products in the middle of the global supply chain were most affected by the pandemic and that the severity of the shock depends on the partner country’s role in the global supply chain. Additionally, we find that Chinese exports are more impacted than Chinese imports, regardless of processing status. These findings are largely consistent with economic theory. Understanding that the effects of global shocks vary by product and country will help guide policies that minimize supply chain disruptions. Keywords: Supply chains; COVID-19; Chinese processing trade (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:86:y:2023:i:c:s1049007823000167 DOI: 10.1016/j.asieco.2023.101596 Access Statistics for this article Journal of Asian Economics is currently edited by C. Wiemer More articles in Journal of Asian Economics from Elsevier |
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