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COVID-19 and international trade: insights and policy challenges in China and USA

Author

Listed:
  • Wei-Wei Zhang
  • Wang Dawei
  • Muhammad Tariq Majeed
  • Sidra Sohail

Abstract

Like the other spheres of economic activity, international trade is also a victim of the current Covid-19 pandemic. Therefore, taking this into consideration, this study examines the impact of the novel Covid-19 virus on international trade, by using monthly data from China and USA. For this purpose, we have referred to the novel Fourier causality test. The findings of the test show that there is a direct causal relationship between the Covid-19 related deaths and the exports and imports of China, while the Covid-19 cases do not have a causal relationship with the exports and imports of China in the pandemic. Moreover, the Covid-19 cases and deaths have a causal relationship with the exports and imports of USA. Thus, we found that there were heterogeneous effects experienced in both the countries. Based on these empirical findings, some policy implications have been suggested for the Chinese and USA economies.

Suggested Citation

  • Wei-Wei Zhang & Wang Dawei & Muhammad Tariq Majeed & Sidra Sohail, 2022. "COVID-19 and international trade: insights and policy challenges in China and USA," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 1991-2002, December.
    • Handle: RePEc:taf:reroxx:v:35:y:2022:i:1:p:1991-2002
    DOI: 10.1080/1331677X.2021.1930091
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