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Impact of Covid-19 on International Trade

Author

Listed:
  • Paresh Kumar Narayan

    (Monash Business School, Monash University)

  • Chun Ping Chang

    (Shih Chien University, Kaohsiung, Taiwan)

  • Xin-Xin Zhao

    (Asia-Pacific Applied Economics Association, Australia)

Abstract

Using a global monthly unbalanced panel dataset of 70 countries from January 2020 to May 2023, we first examine the impact of COVID-19 on global trade. The empirical results show a detrimental impact of COVID-19 on countries’ foreign trade, which persists over six months. We evaluate the robustness of our findings by employing an alternative dependent variable and different estimators. Our main findings hold and two features of our results standout: first, that COVID-19 hurt international trade more for non-Asian countries; and second, that sectoral sensitivity to COVID-19 was heterogenous. These results have important policy implications.

Suggested Citation

  • Paresh Kumar Narayan & Chun Ping Chang & Xin-Xin Zhao, 2024. "Impact of Covid-19 on International Trade," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(4), pages 681-696, December.
    • Handle: RePEc:idn:journl:v:27:y:2024:i:4e:p:681-696
    DOI: https://doi.org/10.59091/2460-9196.2417
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    References listed on IDEAS

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    1. Alessandro Sforza & Marina Steininger, 2020. "Globalization in the Time of Covid-19," CESifo Working Paper Series 8184, CESifo.
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    Cited by:

    1. Kumar, Sanjiv & Prabheesh, K.P. & Gunadi, Iman, 2026. "Unravelling the factors behind Indonesia's international exchange reserves," Journal of Asian Economics, Elsevier, vol. 102(C).
    2. Panigrahi, Biswajit & Prabheesh, K.P., 2025. "Understanding capital controls measurement: Need, classification, and suitability," Journal of Asian Economics, Elsevier, vol. 101(C).
    3. Bastian Muzbar Zams & Akhmad Ginulur Pangersa & Gemala Srihati & Primitiva Febriarti & Nur Annisa Hasniawati, 2025. "RTGS Determinant & Sub-transaction Behavior during COVID-19 in Indonesia," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 28(3), pages 465-504, October.

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    More about this item

    Keywords

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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