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Impact of Covid-19 containment measures on trade

Author

Listed:
  • Juan de Lucio

    (Universidad de Alcalá. Pza. San Diego, s/n, 28801, Alcalá de Henares (Spain))

  • Raúl Mínguez

    (Cámara de Comercio de España and Universidad Antonio de Nebrija. Calle de Santa Cruz de Marcenado, 27, 28015, Madrid (Spain))

  • Asier Minondo

    (Deusto Business School, University of Deusto, Camino de Mundaiz 50, 20012 Donostia - San Sebastián (Spain))

  • Andrés Francisco Requena

    (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain))

Abstract

Combining Spanish firm-level monthly trade data with country-level Covid-19 containment measures over February-July 2020, we show that the value of exports decreased more in destinations that introduced strict containment measures, whereas the value of imports remained una_ected. Strict containment measures in a partner country increased the probability of a firm ceasing to trade with it. Negative effects were concentrated between March and May 2020. The detrimental effect of containment on exports was larger for goods consumed outside the household, for wholesalers and retailers, and for manufacturers not participating in global value chains.

Suggested Citation

  • Juan de Lucio & Raúl Mínguez & Asier Minondo & Andrés Francisco Requena, 2020. "Impact of Covid-19 containment measures on trade," Working Papers 2101, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:2101
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    Cited by:

    1. Jean-Charles Bricongne & Juan Carluccio & Lionel Gérard Fontagné & Guillaume Gaulier & Sebastian Stumpner, 2022. "From Macro to Micro: Large Exporters Coping with Common Shocks," CESifo Working Paper Series 9857, CESifo.
    2. Peña, Jennifer & Prades, Elvira, 2024. "International sourcing during COVID-19: How did Chilean firms fare?," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 5(1).
    3. Cristina Constantinescu & Ana Margarida Fernandes & Arti Grover & Stavros Poupakis & Santiago Reyes, 2022. "Globally Engaged Firms in the Covid-19 Crisis," CESifo Working Paper Series 9711, CESifo.
    4. Dueñas, Marco & Ortiz, Víctor & Riccaboni, Massimo & Serti, Francesco, 2021. "Assessing the Impact of COVID-19 on Trade: a Machine Learning Counterfactual Analysis," Working papers 79, Red Investigadores de Economía.
    5. Asier Minondo, 2021. "Impact of COVID-19 on the trade of goods and services in Spain," Applied Economic Analysis, Emerald Group Publishing Limited, vol. 29(85), pages 58-76, February.
    6. Abdullah Altun & Pınar Tat & Halit Yanikkaya, 2024. "The role of Covid-19 policy responses on GVC participation: the Turkish experience," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 52(1), pages 104-118, May.
    7. Marco Due~nas & Federico Nutarelli & V'ictor Ortiz & Massimo Riccaboni & Francesco Serti, 2021. "Assessing the Heterogeneous Impact of Economy-Wide Shocks: A Machine Learning Approach Applied to Colombian Firms," Papers 2104.04570, arXiv.org, revised Nov 2024.
    8. Hancock, Mary Everett & Mora, Jesse, 2023. "The Impact of COVID-19 on Chinese trade and production: An empirical analysis of processing trade with Japan and the US," Journal of Asian Economics, Elsevier, vol. 86(C).
    9. Constantinescu, Ileana Cristina & Grover, Arti & Nayyar, Gaurav, 2024. "Digitalization, Remote Work and Firm Resilience : Evidence from the COVID-19 Shock," Policy Research Working Paper Series 10949, The World Bank.
    10. Ghose,Devaki & Montfaucon,Angella Faith Lapukeni, 2023. "Firms in Global Value Chains during Covid-19 : Evidence from Indonesia," Policy Research Working Paper Series 10514, The World Bank.

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    More about this item

    Keywords

    Covid-19; containment measures; Firm-level trade; Spain; consumption goods; global value chains;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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