The effect of pandemics on trade: Case of Covid-19

This chapter examines the impact of the COVID-19 health crisis on the global economy, how the pandemic affected export, especially in the agricultural sector, and the long-term impact of COVID-19 on trade, compares the impact of previous pandemics on trade, and the discusses effect of the pandemic on foreign direct investment. We found that the COVID-19 pandemic has disrupted trade, supply chains, and demand patterns, with far-reaching and diverse effects on the global economy. Although agricultural export in some countries has encountered many difficulties, global agricultural exports have remained resilient during the peak of the pandemic. The pandemic has also had a substantial impact on foreign direct investment. We also found that COVID-19 has had a significant and long-lasting impact on trade and the global economy compared to previous pandemics. We suggest that policymakers emphasize diversification and regionalization and ensure faster adoption of digital technologies to mitigate the possible long-term effects of pandemics on trade.