IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkpb/spezial-corona-update-4en.html
   My bibliography  Save this paper

The Covid-19 trade contraction: A view from global shipping, the EU and China

Author

Listed:
  • Chowdhry, Sonali
  • Felbermayr, Gabriel
  • Stamer, Vincent

Abstract

This policy brief examines the effects of the Covid19 pandemic on international trade. Major exporting economies have posted record year-over-year monthly declines in export volume ranging from -7.9% in Germany to -24.3% in South Korea. While logistical bottlenecks are being solved, low demand puts pressure on trade activity. The shipping industry has reduced its activity around Europe, Asia and America by up to -10% pointing to a prolonged reduction in trade. Over the first quarter of 2020, China's trade contracted severely with most economies - particularly Canada, Japan, Russia, Italy and South Africa.The trade collapse affects businesses differently and especially hits those firms that participate in low-value added stages of global value chains by assembling components.

Suggested Citation

  • Chowdhry, Sonali & Felbermayr, Gabriel & Stamer, Vincent, 2020. "The Covid-19 trade contraction: A view from global shipping, the EU and China," Kiel Policy Brief Special Corona-Update 4, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkpb:spezial-corona-update-4en
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/218832/1/KPB-Spezial-Corona-Update-4en.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Manova, Kalina & Yu, Zhihong, 2016. "How firms export: Processing vs. ordinary trade with financial frictions," Journal of International Economics, Elsevier, vol. 100(C), pages 120-137.
    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. Defever, Fabrice & Fischer, Christian & Suedekum, Jens, 2016. "Relational contracts and supplier turnover in the global economy," Journal of International Economics, Elsevier, vol. 103(C), pages 147-165.
    2. Manova, Kalina & Yu, Zhihong, 2017. "Multi-product firms and product quality," Journal of International Economics, Elsevier, vol. 109(C), pages 116-137.
    3. Dai, Mi & Maitra, Madhura & Yu, Miaojie, 2016. "Unexceptional exporter performance in China? The role of processing trade," Journal of Development Economics, Elsevier, vol. 121(C), pages 177-189.
    4. Poncet, Sandra & Starosta de Waldemar, Felipe, 2013. "Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness," World Development, Elsevier, vol. 51(C), pages 104-118.
    5. Girma, Sourafel & Görg, Holger, 2021. "Productivity effects of processing and ordinary export market entry: A time-varying treatments approach," KCG Working Papers 23, Kiel Centre for Globalization (KCG).
    6. L. An & C. Hu & Yong Tan, 2017. "Regional effects of export tax rebate on exporting firms: Evidence from China," Review of International Economics, Wiley Blackwell, vol. 25(4), pages 774-798, September.
    7. Maria D. Tito & Ruoying Wang, 2017. "Exporting and Frictions in Input Markets : Evidence from Chinese Data," Finance and Economics Discussion Series 2017-077, Board of Governors of the Federal Reserve System (U.S.).
    8. Sandra Poncet & Felipe Starosta de Waldemar, 2015. "Product Relatedness and Firm Exports in China," World Bank Economic Review, World Bank Group, vol. 29(3), pages 579-605.
    9. Imbruno, Michele, 2019. "Importing under trade policy uncertainty: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 47(4), pages 806-826.
    10. Yiqing Xie & Chao Song, 2020. "The role of processing trade in exporters' responses to exchange rate: Evidence from China," The World Economy, Wiley Blackwell, vol. 43(6), pages 1521-1543, June.
    11. Raoul Minetti & Pierluigi Murro & Zeno Rotondi & Susan Chun Zhu, 2019. "Financial Constraints, Firms’ Supply Chains, and Internationalization," Journal of the European Economic Association, European Economic Association, vol. 17(2), pages 327-375.
    12. Bai, Xue & Hong, Shengjie & Wang, Yaqi, 2021. "Learning from processing trade: Firm evidence from China," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 579-602.
    13. Van Assche, Ari & Van Biesebroeck, Johannes, 2018. "Functional upgrading in China's export processing sector," China Economic Review, Elsevier, vol. 47(C), pages 245-262.
    14. Zhe Chen & Junjie Hong & Xiaonan Sun, 2020. "Exchange rate risk and trade mode choice in processing trade: Evidence from Chinese data," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 537-564, May.
    15. Cheng, Dong & Hu, Zhongzhong & Tan, Yong, 2019. "Heterogeneous Impacts of Finance on Firm Exports: Evidence from Export Deregulation in A Large Developing Country," MPRA Paper 96861, University Library of Munich, Germany.
    16. 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.
    17. Fabrice Defever & Alejandro Riaño, 2012. "China's Pure Exporter Subsidies," CEP Discussion Papers dp1182, Centre for Economic Performance, LSE.
    18. Zhiyuan Chen & Aksel Erbahar & Yuan Zi, 2019. "Made and Created in China: Super Processors and Two-way Heterogeneity," Tinbergen Institute Discussion Papers 19-080/VI, Tinbergen Institute.
    19. Muhammad Akram & Abdul Rashid, 2018. "Financial turmoil, external finance and UK exports," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(4), pages 651-681, October.
    20. Yu Gao & Yin He & Xiaopeng Yin, 2017. "Fixed Export Costs and Trade Patterns: The Case of China," The World Economy, Wiley Blackwell, vol. 40(8), pages 1614-1623, August.

    More about this item

    Keywords

    Trade; Covid-19; China; GVCs; Handel;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:ifwkpb:spezial-corona-update-4en. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.