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The Covid-19 Pandemic and European Trade Patterns: A Sectoral Analysis

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  • Guglielmo Maria Caporale
  • Anamaria Diana Sova
  • Robert Sova

Abstract

This paper examines how the Covid-19 pandemic affected European trade patterns. Specifically, dynamic panel data models are estimated to assess the effects on exports and imports of various sectors and products (selected on the basis of their trading volume or strategic importance) of the restrictions and of other policy measures adopted by national governments during the crisis. The results suggest that the impact of the Covid-19 pandemic was heterogeneous across sectors and product types, both the initial drop and the subsequent rebound being different depending on sectoral characteristics and the degree of resilience. In particular, trade flows of durable products were more significantly affected by the pandemic compared to those of non-durable ones.

Suggested Citation

  • Guglielmo Maria Caporale & Anamaria Diana Sova & Robert Sova, 2022. "The Covid-19 Pandemic and European Trade Patterns: A Sectoral Analysis," CESifo Working Paper Series 10115, CESifo.
    • Handle: RePEc:ces:ceswps:_10115
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    References listed on IDEAS

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    1. Guglielmo Maria Caporale & Anamaria Diana Sova & Robert Sova, 2024. "The Covid‐19 pandemic and European trade flows: Evidence from a dynamic panel model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2563-2580, July.

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    More about this item

    Keywords

    Covid-19 pandemic; trade patterns; sectoral analysis; product analysis; stringency; policy responses; uncertainty; Europe; dynamic panel models; GMM estimator;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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