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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.
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Details
1 School of Economics and Management, Changchun University of Science and Technology, Changchun, Jilin, China
2 Northeast Asia Research Center, Jilin University, Changchun, Jilin, China
3 School of Economics, Quaid-i-Azam University, Islamabad, Pakistan
4 Pakistan Institute of Development Economics (PIDE), Islamabad, Pakistan