IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v45y2022i7p2270-2283.html
   My bibliography  Save this article

How trade affects pandemics? Evidence from severe acute respiratory syndromes in 2003

Author

Listed:
  • Faqin Lin
  • Xiaosong Wang
  • Mohan Zhou

Abstract

This paper investigates whether the rapid expansion of international trade after China's WTO entry in 2001 promotes the spread of severe acute respiratory syndromes (SARS) in 2003. Examining the relationship is helpful to distinguish the hidden costs of trade openness. This paper uses Frankel and Romer (1999, The American Economic Review, 89, 379) framework to construct the geography‐based instruments by applying province‐country gravity relation for causal identification. Utilising cross‐section data of SARS cases of 31 provinces in China, our two‐stage least squares regression results show that international trade accelerates the spread of SARS. Cross‐country evidence also suggests the causal relation. In addition, we find that the people's inter‐provincial mobility driven by trade expansion drives the spread of epidemic diseases.

Suggested Citation

  • Faqin Lin & Xiaosong Wang & Mohan Zhou, 2022. "How trade affects pandemics? Evidence from severe acute respiratory syndromes in 2003," The World Economy, Wiley Blackwell, vol. 45(7), pages 2270-2283, July.
    • Handle: RePEc:bla:worlde:v:45:y:2022:i:7:p:2270-2283
    DOI: 10.1111/twec.13127
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/twec.13127
    Download Restriction: no
    File URL: https://libkey.io/10.1111/twec.13127?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lant Pritchett & Lawrence H. Summers, 1996. "Wealthier is Healthier," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 841-868.
    2. László Halpern & Miklós Koren & Adam Szeidl, 2015. "Imported Inputs and Productivity," American Economic Review, American Economic Association, vol. 105(12), pages 3660-3703, December.
    3. Loren Brandt & Johannes Van Biesebroeck & Luhang Wang & Yifan Zhang, 2017. "WTO Accession and Performance of Chinese Manufacturing Firms," American Economic Review, American Economic Association, vol. 107(9), pages 2784-2820, September.
    4. Justin R. Pierce & Peter K. Schott, 2020. "Trade Liberalization and Mortality: Evidence from US Counties," American Economic Review: Insights, American Economic Association, vol. 2(1), pages 47-64, March.
    5. Emily Oster, 2012. "Routes Of Infection: Exports And Hiv Incidence In Sub-Saharan Africa," Journal of the European Economic Association, European Economic Association, vol. 10(5), pages 1025-1058, October.
    6. Bombardini, Matilde & Li, Bingjing, 2020. "Trade, pollution and mortality in China," Journal of International Economics, Elsevier, vol. 125(C).
    7. Bas, Maria & Strauss-Kahn, Vanessa, 2015. "Input-trade liberalization, export prices and quality upgrading," Journal of International Economics, Elsevier, vol. 95(2), pages 250-262.
    8. Irwin, Douglas A. & Tervio, Marko, 2002. "Does trade raise income?: Evidence from the twentieth century," Journal of International Economics, Elsevier, vol. 58(1), pages 1-18, October.
    9. Haichao Fan & Yao Amber Li & Stephen R. Yeaple, 2015. "Trade Liberalization, Quality, and Export Prices," The Review of Economics and Statistics, MIT Press, vol. 97(5), pages 1033-1051, December.
    10. Li, Bingjing, 2018. "Export expansion, skill acquisition and industry specialization: evidence from china," Journal of International Economics, Elsevier, vol. 114(C), pages 346-361.
    11. Francisco Alcalá & Antonio Ciccone, 2004. "Trade and Productivity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(2), pages 613-646.
    12. Lin, Faqin & Sim, Nicholas C.S., 2015. "Exports, HIV incidence and the Baltic Dry Index: Further evidence from sub-Saharan Africa," Economics Letters, Elsevier, vol. 126(C), pages 35-39.
    13. Liu, Qing & Qiu, Larry D., 2016. "Intermediate input imports and innovations: Evidence from Chinese firms' patent filings," Journal of International Economics, Elsevier, vol. 103(C), pages 166-183.
    14. A. Kerem Co?ar & Pablo D. Fajgelbaum, 2016. "Internal Geography, International Trade, and Regional Specialization," American Economic Journal: Microeconomics, American Economic Association, vol. 8(1), pages 24-56, February.
    15. Colantone, Italo & Crinò, Rosario & Ogliari, Laura, 2015. "The Hidden Cost of Globalization: Import Competition and Mental Distress," CEPR Discussion Papers 10874, C.E.P.R. Discussion Papers.
    16. Fan, Haichao & Lin, Faqin & Lin, Shu, 2020. "The hidden cost of trade liberalization: Input tariff shocks and worker health in China," Journal of International Economics, Elsevier, vol. 126(C).
    17. Kasahara, Hiroyuki & Rodrigue, Joel, 2008. "Does the use of imported intermediates increase productivity? Plant-level evidence," Journal of Development Economics, Elsevier, vol. 87(1), pages 106-118, August.
    18. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    19. Jeffrey A. Frankel & Andrew K. Rose, 2005. "Is Trade Good or Bad for the Environment? Sorting Out the Causality," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 85-91, February.
    20. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
    21. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    22. McManus, T. Clay & Schaur, Georg, 2016. "The effects of import competition on worker health," Journal of International Economics, Elsevier, vol. 102(C), pages 160-172.
    23. Baghdadi, Leila & Martinez-Zarzoso, Inmaculada & Zitouna, Habib, 2013. "Are RTA agreements with environmental provisions reducing emissions?," Journal of International Economics, Elsevier, vol. 90(2), pages 378-390.
    24. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1727-1767.
    25. Noguer, Marta & Siscart, Marc, 2005. "Trade raises income: a precise and robust result," Journal of International Economics, Elsevier, vol. 65(2), pages 447-460, March.
    26. Ann L. Owen & Stephen Wu, 2007. "Is Trade Good for Your Health?," Review of International Economics, Wiley Blackwell, vol. 15(4), pages 660-682, September.
    27. Levine, David I. & Rothman, Dov, 2006. "Does trade affect child health?," Journal of Health Economics, Elsevier, vol. 25(3), pages 538-554, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lihua Dai & Qi Fan & Yanyun Li & Faqin Lin, 2021. "No time to look after the kids: The unintended consequences of export expansion on child health," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(3), pages 527-548, July.
    2. Fan, Haichao & Lin, Faqin & Lin, Shu, 2020. "The hidden cost of trade liberalization: Input tariff shocks and worker health in China," Journal of International Economics, Elsevier, vol. 126(C).
    3. Liu, Mengdi & Zhang, Bing & Liao, Xianchun, 2022. "Can trade liberalization promote green production? Evidence from China's manufacturing enterprises," Journal of Asian Economics, Elsevier, vol. 79(C).
    4. Yiping Sun & Chengjun Wu & Xiaoming Zhu & Pingguan Bian, 2022. "China’s Accession to the WTO as a Shock to Residents’ Health—A Difference-in-Difference Approach," IJERPH, MDPI, vol. 19(22), pages 1-18, November.
    5. Cecília Hornok & Balázs Muraközy, 2019. "Markups of Exporters and Importers: Evidence from Hungary," Scandinavian Journal of Economics, Wiley Blackwell, vol. 121(3), pages 1303-1333, July.
    6. Colantone, Italo & Crinò, Rosario, 2014. "New imported inputs, new domestic products," Journal of International Economics, Elsevier, vol. 92(1), pages 147-165.
    7. Felbermayr, Gabriel & Gröschl, Jasmin, 2013. "Natural disasters and the effect of trade on income: A new panel IV approach," European Economic Review, Elsevier, vol. 58(C), pages 18-30.
    8. C Sharma, 2016. "Does importing more inputs raise productivity and exports? Some evidence from Indian manufacturing," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 1-23, March.
    9. Torres Mazzi, Caio & Foster-McGregor, Neil, 2021. "Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data," Research Policy, Elsevier, vol. 50(1).
    10. Copestake, Alexander & Zhang, Wenzhang, 2023. "Inputs, networks and quality-upgrading: Evidence from China in India," China Economic Review, Elsevier, vol. 77(C).
    11. Lawrence Edwards & Marco Sanfilippo & Asha Sundaram, 2016. "Importing and firm performance: New evidence from South Africa," WIDER Working Paper Series 039, World Institute for Development Economic Research (UNU-WIDER).
    12. Maria Bas & Caroline Paunov, 2019. "What gains and distributional implications result from trade liberalization," Documents de travail du Centre d'Economie de la Sorbonne 19003, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    13. Li, Juncheng & Qin, Xiuting & Tang, Jian & Yang, Lu, 2022. "Foreign trade and innovation sustainability: Evidence from China," Journal of Asian Economics, Elsevier, vol. 81(C).
    14. Lawrence Edwards & Marco Sanfilippo & Asha Sundaram, 2020. "Importing and Productivity: An Analysis of South African Manufacturing Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 411-432, September.
    15. Faqin Lin & Nicholas C.S. Sim & Ngoc Pham, 2015. "Child Mortality in the LDCs: The Role of Trade, Institutions and Environmental Quality," School of Economics and Public Policy Working Papers 2015-15, University of Adelaide, School of Economics and Public Policy.
    16. Feng, Ling & Li, Zhiyuan & Swenson, Deborah L., 2016. "The connection between imported intermediate inputs and exports: Evidence from Chinese firms," Journal of International Economics, Elsevier, vol. 101(C), pages 86-101.
    17. Fan, Haichao & Li, Yao Amber & Yeaple, Stephen R., 2018. "On the relationship between quality and productivity: Evidence from China's accession to the WTO," Journal of International Economics, Elsevier, vol. 110(C), pages 28-49.
    18. Paul L. E. Grieco & Shengyu Li & Hongsong Zhang, 2022. "Input prices, productivity, and trade dynamics: long‐run effects of liberalization on Chinese paint manufacturers," RAND Journal of Economics, RAND Corporation, vol. 53(3), pages 516-560, September.
    19. Liu, Qing & Qiu, Larry D., 2016. "Intermediate input imports and innovations: Evidence from Chinese firms' patent filings," Journal of International Economics, Elsevier, vol. 103(C), pages 166-183.
    20. Douglas A. Irwin, 2019. "Does Trade Reform Promote Economic Growth? A Review of Recent Evidence," Working Paper Series WP19-9, Peterson Institute for International Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:45:y:2022:i:7:p:2270-2283. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.