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Gravity of Covid-19

Masood, Amjad and Ahmed, Junaid and Martínez-Zarzoso, Inmaculada (2021): Gravity of Covid-19.

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Abstract

In this study, we analyze the impact of the Covid-19 pandemic on bilateral trade using monthly data from January to June 2020. Imports of the OECD member states are analysed using a structural gravity model of trade estimated with the Poisson pseudo maximum likelihood estimator. The analysis is conducted for total imports and for fruit and vegetables. Our findings show a significantly negative impact of the pandemic on both import measures, which is more pronounced for the perishable goods than for aggregate imports.

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