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These shocks then spread and increased through disruptions in the global supply chains. A recent World Bank working paper assesses the trade effect of the pandemic on Indonesia, Southeast Asia’s largest economy. In a new paper trading coronavirus (Liu et al. 2021), we resolve these ambiguities and provide what we believe are the first estimates of how each of these channels affected international trade flows in 2020, viewed through their impact on imports from China.
This dynamic perspective may lead countries to trade efficiency for domestic reaction capacity, nurturing domestic skills through contracts between the public health sector and local firms [31]. For example, on August 6th, 2020, the US President issued an executive order to ensure that essential medicines would be produced in the USA [32]. Such nurturing of domestic capacities in health-related products is consistent with previous policies aiming to develop strategic sectors (e.g. electric cars, digital-intensive goods and services and green technologies). For Spain, it is likely that the drive for higher domestic capacity will be framed under EU’s open strategic autonomy framework, which could lead to an increase in the share of this economic area of Spanish trade (European Commission, 2020). While it is impossible to predict the course of COVID-19’s impact on the global economy and agricultural trade, empirical data provide evidence of a sustained recovery in agricultural trade, according to USDA, Economic Research Service.
Import of human organs and bone marrow destined for transplant in the EU
If firms can learn how to manage remotely provided day-to-day activities, they might decide to further outsource those jobs to personnel located in lower-wage countries (Baldwin, 2019). In parallel, the digital transformation accelerated by COVID-19 might cause firms to be more open to hiring business services from foreign countries. This could increase Spanish exports in services, such as market research or engineering, which can be provided online and where the share of exporters is large (Minondo, 2015). The decrease in non-tourism services trade, comprising transport, finance, communications and business services, was much lower than that of tourism. Between March and August 2020, exports and imports of non-tourism services decreased by 12.6% and 16.6%, respectively. The Survey of International Trade in Services provided by the National Statistics Institute reported an increase in business and financial service exports during the second quarter of 2020 relative to the same period of 2019.
The management of a company considers that the price is undervalued and performs a share buyback program, thus reducing the outstanding number of shares on the market, increasing the percentage of shares owned by the firm’s investors (Babenko et al. 2012; Gan et al. 2017). In addition, share buybacks also have a significant impact on earnings per share (Farrell et al. 2014; Almeida et al. 2016). Practitioners and academics https://www.bigshotrading.info/blog/fibonacci-retracement/ alike consider the undervaluation hypothesis as one of the most important reasons for share buybacks (Vermaelen 1981; Ikenberry et al. 1995; Chan et al. 2004; Brav et al. 2005; Liang 2012). Considering the aforementioned arguments, we adopt as the baseline specification the unconditional quantile regression (UQR) for panel data developed by Borgen (2016), which accounts for high-dimensional fixed effects.
Impact of COVID-19 by region
This paper provides empirical evidence on the interaction between institutional and foreigners’ trading and market returns in the context of the COVID-19 crisis and the increasing opening-up and institutionalization of Chinese stock market, the largest emerging markets. For foreign flows, we cannot find an alternative data limited by the data availability. We test the robustness of the relation between foreigners’ flows and returns by two aspects.
