Trade Under Lockdown

Antoine Berthou and Sebastian Stumpner

Working papers from Banque de France

Abstract: To curb the effect of the Covid-19 pandemic on public health, many countries around the world introduced lockdown policies in 2020. We estimate the effect of these lockdowns on international trade flows, using a rich dataset of monthly bilateral product-level trade flows that covers roughly three quarters of world trade. Our main findings are: (i) Both exporter and importer lockdowns substantially reduced international trade, with importer lockdowns having a stronger impact; (ii) The effect of lockdowns on trade was strongest during the first wave, and has since been declining; (iii) Beyond the direct effect of lockdowns, we find evidence for indirect effects (i.e. lockdowns by third countries) through global value chains.

Keywords: COVID-19; Impact of Lockdowns; Global Value Chains (search for similar items in EconPapers)
JEL-codes: F10 F14 F44 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2022
New Economics Papers: this item is included in nep-cwa, nep-int and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:867

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