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Covid-19 and international trade: Evidence from New Zealand

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  • Nitsch, Volker

Abstract

The impact of the Covid-19 pandemic on international trade varies along several dimensions, including the type of product, the size of firm and over time. In this note, I provide evidence of systematic variation in the trade response to the pandemic along another, previously unexplored dimension, the mode of transportation. Analyzing daily data from New Zealand, I find that the value of seaborne exports and imports increases relative to shipments by air during pandemic lockdowns. While this finding is consistent with many explanations, including the sensitivity of trade to external finance, it generally provides support for the importance of frictions on the supply side.

Suggested Citation

  • Nitsch, Volker, 2022. "Covid-19 and international trade: Evidence from New Zealand," Economics Letters, Elsevier, vol. 217(C).
    • Handle: RePEc:eee:ecolet:v:217:y:2022:i:c:s0165176522001975
    DOI: 10.1016/j.econlet.2022.110627
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    Cited by:

    1. Fuchs, Andreas & Kaplan, Lennart & Kis-Katos, Krisztina & Leue, Sebastian & Turbanisch, Felix & Wang, Feicheng, 2025. "Mask wars: Sourcing a critical medical product from China in times of COVID-19," Journal of International Economics, Elsevier, vol. 155(C).
    2. Nathapornpan Piyaareekul Uttama, 2023. "Revisiting the Impacts of COVID-19 Government Policies and Trade Measures on Trade Flows: A Focus on RCEP Nations," Working Papers DP-2023-17, Economic Research Institute for ASEAN and East Asia (ERIA).

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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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