Original scientific paper
https://doi.org/10.1080/1331677X.2021.1930091
COVID-19 and international trade: insights and policy challenges in China and USA
Wei-Wei Zhang
Wang Dawei
Muhammad Tariq Majeed
Sidra Sohail
Abstract
Like the other spheres of economic activity, international trade is
also a victim of the current Covid-19 pandemic. Therefore, taking
this into consideration, this study examines the impact of the
novel Covid-19 virus on international trade, by using monthly
data from China and USA. For this purpose, we have referred to
the novel Fourier causality test. The findings of the test show that
there is a direct causal relationship between the Covid-19 related
deaths and the exports and imports of China, while the Covid-19
cases do not have a causal relationship with the exports and
imports of China in the pandemic. Moreover, the Covid-19 cases
and deaths have a causal relationship with the exports and
imports of USA. Thus, we found that there were heterogeneous
effects experienced in both the countries. Based on these empirical findings, some policy implications have been suggested for
the Chinese and USA economies.
Keywords
COVID-19; international trade; China; USA
Hrčak ID:
302247
URI
Publication date:
31.3.2023.
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