The Impacts of Lockdown Policies on International Trade in the Philippines
The Philippines was among the most infected countries in East Asia at the onset of the COVID-19 outbreak. This study analyzes how international trade on various margins was affected by the country’s own lockdown policies and those of trading partne...
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| Format: | Working Paper |
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World Bank, Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/undefined/412431643226839658/The-Impacts-of-Lockdown-Policies-on-International-Trade-in-the-Philippines http://hdl.handle.net/10986/36882 |
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okr-10986-368822022-01-28T05:10:38Z The Impacts of Lockdown Policies on International Trade in the Philippines Arenas, Guillermo Carlos Majune, Socrates Montfaucon, Angella Faith LOCKDOWN EXPORTS IMPORTS GLOBAL VALUE CHAIN INTERNATIONAL TRADE PANDEMIC IMPACT PANDEMIC RESPONSE CORONAVIRUS COVID-19 The Philippines was among the most infected countries in East Asia at the onset of the COVID-19 outbreak. This study analyzes how international trade on various margins was affected by the country’s own lockdown policies and those of trading partners. Using a monthly series of product-by-country data for the period from January 2019 to December 2020 and an event study design, the paper shows that domestic lockdown measures did not affect international trade but external lockdowns affected both ex- ports and imports. The introduction of lockdown measures by trading partners affected imports more than exports, leading to 7 and 56 percent monthly average drops in export and import values, respectively. Restrictions on internal movements and international travel controls in partner countries were responsible for the drop in exports. The slump in imports was because of workplace closure, stay-at-home requirements, restrictions on internal movement, and international travel controls by trading partners of the Philip- pines. Intermediate goods were the key driver of the drop in imports following foreign lockdowns, reflecting supply disruptions in backward global value chain participation. At the same time, exports of intermediate goods were more resilient to the lockdown policies. Finally, both exports and imports were more affected at the extensive margin than the intensive margin, as lockdown measures hindered interactions among people, in turn reducing the potential of businesses to create new relationships and launch new products in foreign markets. Overall, diversified and geographically dispersed suppliers can help countries adjust better to future disruptions. 2022-01-27T14:10:22Z 2022-01-27T14:10:22Z 2022-01 Working Paper http://documents.worldbank.org/curated/undefined/412431643226839658/The-Impacts-of-Lockdown-Policies-on-International-Trade-in-the-Philippines http://hdl.handle.net/10986/36882 English Policy Research Working Paper;No. 9911 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Philippines |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
LOCKDOWN EXPORTS IMPORTS GLOBAL VALUE CHAIN INTERNATIONAL TRADE PANDEMIC IMPACT PANDEMIC RESPONSE CORONAVIRUS COVID-19 |
| spellingShingle |
LOCKDOWN EXPORTS IMPORTS GLOBAL VALUE CHAIN INTERNATIONAL TRADE PANDEMIC IMPACT PANDEMIC RESPONSE CORONAVIRUS COVID-19 Arenas, Guillermo Carlos Majune, Socrates Montfaucon, Angella Faith The Impacts of Lockdown Policies on International Trade in the Philippines |
| geographic_facet |
East Asia and Pacific Philippines |
| relation |
Policy Research Working Paper;No. 9911 |
| description |
The Philippines was among the most
infected countries in East Asia at the onset of the COVID-19
outbreak. This study analyzes how international trade on
various margins was affected by the country’s own lockdown
policies and those of trading partners. Using a monthly
series of product-by-country data for the period from
January 2019 to December 2020 and an event study design, the
paper shows that domestic lockdown measures did not affect
international trade but external lockdowns affected both ex-
ports and imports. The introduction of lockdown measures by
trading partners affected imports more than exports, leading
to 7 and 56 percent monthly average drops in export and
import values, respectively. Restrictions on internal
movements and international travel controls in partner
countries were responsible for the drop in exports. The
slump in imports was because of workplace closure,
stay-at-home requirements, restrictions on internal
movement, and international travel controls by trading
partners of the Philip- pines. Intermediate goods were the
key driver of the drop in imports following foreign
lockdowns, reflecting supply disruptions in backward global
value chain participation. At the same time, exports of
intermediate goods were more resilient to the lockdown
policies. Finally, both exports and imports were more
affected at the extensive margin than the intensive margin,
as lockdown measures hindered interactions among people, in
turn reducing the potential of businesses to create new
relationships and launch new products in foreign markets.
Overall, diversified and geographically dispersed suppliers
can help countries adjust better to future disruptions. |
| format |
Working Paper |
| author |
Arenas, Guillermo Carlos Majune, Socrates Montfaucon, Angella Faith |
| author_facet |
Arenas, Guillermo Carlos Majune, Socrates Montfaucon, Angella Faith |
| author_sort |
Arenas, Guillermo Carlos |
| title |
The Impacts of Lockdown Policies on International Trade in the Philippines |
| title_short |
The Impacts of Lockdown Policies on International Trade in the Philippines |
| title_full |
The Impacts of Lockdown Policies on International Trade in the Philippines |
| title_fullStr |
The Impacts of Lockdown Policies on International Trade in the Philippines |
| title_full_unstemmed |
The Impacts of Lockdown Policies on International Trade in the Philippines |
| title_sort |
impacts of lockdown policies on international trade in the philippines |
| publisher |
World Bank, Washington, DC |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/undefined/412431643226839658/The-Impacts-of-Lockdown-Policies-on-International-Trade-in-the-Philippines http://hdl.handle.net/10986/36882 |
| _version_ |
1764486090889101312 |