Cover IMF Working Papers
Buy Book in Print
Trade and the COVID-19 Pandemic: Lessons from French Firms
Author:
Mariya Brussevich https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Mariya Brussevich in
Current site
Google Scholar Close
,
Mr. Chris Papageorgiou
Search for other papers by Mr. Chris Papageorgiou in
Current site
Google Scholar Close
, and
Pauline Wibaux
Search for other papers by Pauline Wibaux in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2022: Issue 081
Language:
English
Publication Date:
06 May 2022
DOI:
https://doi.org/10.5089/9798400204364.001
ISBN:
9798400204364
ISSN:
1018-5941
Pages:
34
Keywords:
COVID-19; trade; supply chains disruptions; French firms; trade recovery; trade adjustment; inventory intensity; shock propagation; medium-sized firm; trade ban; Imports; Exports; Trade balance; Trade policy; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (2.8 MB) Download Epub
This paper uses granular customs data from France to investigate propagation of the COVID-19 shock along the supply chains in 2020. It quantifies the effect of the COVID-19 shock on trade adjustment and identifies mitigating and amplifying factors contributing to French firms’ heterogeneous adjustment paths. Early in the pandemic, firms mainly responded to global lockdowns and spread of the virus by reducing trade volumes (intensive margin) as opposed to exiting from import and export markets (ex-tensive margin). However, adjustment along the extensive margin played a more important role in trade with developing countries. It is shown that the impact of lockdowns was stronger for final consumer goods and the trade recovery was predominantly demand-driven. More automated, inventory-intensive, older, and medium-sized firms were more insulated from the shock, whereas firms’ reliance on air transportation for shipping goods amplified the shock. Trade bans and promotion measures implemented by governments in response to the pandemic had little impact on aggregate trade flows.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund