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Can e-commerce mitigate the negative impact of COVID-19 on international trade?

Author

Listed:
  • Kazunobu Hayakawa

    (Bangkok Research Center, Institute of Developing Economies)

  • Hiroshi Mukunoki

    (Gakushuin University)

  • Shujiro Urata

    (Institute of Developing Economies)

Abstract

This study aims to empirically investigate the role of E-commerce (EC) on the trade impacts of COVID-19. To this end, we estimate gravity equations for bilateral trade among 34 reporting countries and their 145 partner countries during January–August in 2019 and 2020. Our major findings can be summarized as follows. A larger number of confirmed cases or deaths in both importing and exporting countries significantly decrease international trade. However, we found that EC development in importing countries contributes to mitigating this negative effect of COVID-19 on trade while that in exporting countries does not. These results are robust for our use of multiple measures of EC development.

Suggested Citation

  • Kazunobu Hayakawa & Hiroshi Mukunoki & Shujiro Urata, 2023. "Can e-commerce mitigate the negative impact of COVID-19 on international trade?," The Japanese Economic Review, Springer, vol. 74(2), pages 215-232, April.
    • Handle: RePEc:spr:jecrev:v:74:y:2023:i:2:d:10.1007_s42973-021-00099-3
    DOI: 10.1007/s42973-021-00099-3
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    Cited by:

    1. Ando, Mitsuyo & Hayakawa, Kazunobu, 2022. "Impact of COVID-19 on trade in services," Japan and the World Economy, Elsevier, vol. 62(C).
    2. Yanlai Li & Zifan Shen & Cuiming Zhao & Kwai-Sang Chin & Xuwei Lang, 2024. "Understanding Customer Opinion Change on Fresh Food E-Commerce Products and Services—Comparative Analysis before and during COVID-19 Pandemic," Sustainability, MDPI, vol. 16(7), pages 1-22, March.
    3. Mitsuyo Ando & Fukunari Kimura & Kenta Yamanouchi, 2022. "RCEP and International Production Networks," Chapters, in: Fukunari Kimura & Shandre Mugan Thangavelu & Dionisius Narjoko (ed.), Regional Comprehensive Economic Partnership: Implications, Challenges, and Future Growth of East Asia and ASEAN, chapter 6, pages 141-170, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Jungsuk Kim & Gemma Estrada & Yothin Jinjarak & Donghyun Park & Shu Tian, 2022. "ICT and Economic Resilience during COVID-19: Cross-Country Analysis," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    5. Pham Quang Huy & Vu Kien Phuc, 2023. "Big data in relation with business intelligence capabilities and e-commerce during COVID-19 pandemic in accountant’s perspective," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    6. Célestin Coquidé & José Lages & Leonardo Ermann & Dima Shepelyansky, 2022. "COVID-19 impact on the international trade," Post-Print hal-03536528, HAL.
    7. Nishant Chadha & Viswanath Pingali & Daniel Sokol, 2023. "Small Businesses and Digital Platforms," IIMA Working Papers WP 2023-09-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    8. Fodouop Kouam Arthur William, 2022. "Effects of Covid-19 on international trade and cross-border e-commerce live streaming: Evidence from China," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 133-141.
    9. Omer Faruk Derindag & Zaim Reha Yasar & Caglayan Aslan & Salih Parmaksiz, 2024. "Analyzing the differential effects of COVID-19 on export flows: a focus on customs procedures," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 51(4), pages 977-1000, November.

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    More about this item

    Keywords

    COVID-19; E-commerce; Trade;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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