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COVID‐19 and the distance effect

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  • Faqin Lin
  • Mengxun Liu
  • Mohan Zhou

Abstract

Using nearly 200 countries' bilateral trade data and the gravity equation, this paper provides evidence that COVID‐19 has led countries to trade more with their closer countries. The negative distance effect is greater during the pandemic period, with a greater number of infected cases, deaths or stricter control policies. A simple model of a transportation sector that was affected by the pandemic was built to explain our empirical findings.

Suggested Citation

  • Faqin Lin & Mengxun Liu & Mohan Zhou, 2024. "COVID‐19 and the distance effect," The World Economy, Wiley Blackwell, vol. 47(3), pages 1297-1323, March.
    • Handle: RePEc:bla:worlde:v:47:y:2024:i:3:p:1297-1323
    DOI: 10.1111/twec.13479
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    References listed on IDEAS

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