Can global trade of medical supplies solve the COVID-19 puzzle?

Shaker, Saber (2020): Can global trade of medical supplies solve the COVID-19 puzzle? Published in: Journal of Economics, Finance and Management Studies , Vol. 3, No. 12

Abstract

The main aim of this study to determine the explanatory variables of the Chinese exports of COVID-19 medical supplies to its 89 major trading partners in the first half of the year 2020. In addition, it explores the puzzle of the COVID-19 pandemic outbreak from an economic perspective. We used the Ordinary-least-square (OLS) regression under a cross-sectional data framework to construct the quantitative analysis. The main findings are: First, the number of old population and the number of COVID-19 confirmed cases in the trading partner have been drivers of Chinese exports of COVID-19 medical supplies. Second, tariff barriers levied on the trading partner significantly impedes the Chinese exports of COVID-19 medical supplies to its trade partners, especially from middle-income countries. In future work, the analysis of this type of trade through the supply-side factors could be investigated. Also, some other variables such as non-tariff measures could be utilized. The study encourages literature for empirically analyzing the trade of medical supplies, in general, under econometric modeling. The results are illustrated based on consistent quantitative evidence.

• Item Type: MPRA Paper
• Language: English
• Keywords: COVID-19, Medical supplies, Trade, China, Cross-sectional data
• Subjects: F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F40 - General; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F49 - Other; I - Health, Education, and Welfare > I1 - Health > I15 - Health and Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O19 - International Linkages to Development ; Role of International Organizations

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