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COVID-19: Impacts of Indonesia's Trade

Author

Listed:
  • Lili Yan Ing

    (Economic Research Institute for ASEAN and East Asia (ERIA))

  • Yessi Vadila

    (Ministry of Trade of the Republic of Indonesia)

Abstract

This paper analyses how the coronavirus (COVID-19) has affected Indonesia’s exports and imports, both in terms of volume and value. We use monthly trade data at the Harmonized System (HS) 8-digit level from January 2017 to December 2020. We use fixed effects and difference-in-differences (DID) approaches. The findings show that COVID-19 lowers the export volume by 10.7% (export value by 13.4%). At the same time, COVID-19 reduces import volume by 16.42% (import value by 25.9%). Analysing the causes of decreases in Indonesia’s trade will shed light on the causes of the drop in such trade figures. It will help design appropriate policy responses to enhance trade for the Indonesian economy’s swift recovery.

Suggested Citation

  • Lili Yan Ing & Yessi Vadila, 2022. "COVID-19: Impacts of Indonesia's Trade," Working Papers DP-2021-48, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2021-48
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    References listed on IDEAS

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    4. Vandoros, Sotiris, 2020. "Excess mortality during the Covid-19 pandemic: Early evidence from England and Wales," Social Science & Medicine, Elsevier, vol. 258(C).
    5. Hayakawa, Kazunobu & Mukunoki, Hiroshi, 2020. "Impacts of covid-19 on international trade : evidence from the first quarter of 2020," IDE Discussion Papers 791, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Indonesia; Covid-19; Trade; Empirical studies; Southeast Asia;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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