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Mask wars: China's exports of medical goods in times of COVID-19

Author

Listed:
  • Fuchs, Andreas
  • Kaplan, Lennart
  • Kis-Katos, Krisztina
  • Schmidt, Sebastian S.
  • Turbanisch, Felix
  • Wang, Feicheng
Abstract
The COVID-19 outbreak has cut China's supply of and raised the world's demand for face masks, disinfectants, ventilators, and other critical medical goods. This article studies the economic and political factors that are associated with China's exports of medical equipment during the first two months of the global pandemic. Regression results show that-controlled for demand factors-countries with stronger past economic ties with China import more critical medical goods from China at both the national level and the level of Chinese provinces. Friendly political relations, such as the twinning of provinces, appear to work as a substitute for pre-existing economic ties at the provincial level. These findings imply that, to secure access to medical equipment in crises, countries are well advised to either diversify their sources or to develop closer relations with Beijing and China's provinces.

Suggested Citation

  • Fuchs, Andreas & Kaplan, Lennart & Kis-Katos, Krisztina & Schmidt, Sebastian S. & Turbanisch, Felix & Wang, Feicheng, 2020. "Mask wars: China's exports of medical goods in times of COVID-19," University of Göttingen Working Papers in Economics 398, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:398
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    References listed on IDEAS

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    28. repec:hal:spmain:info:hdl:2441/7an8r1ubqs93caeqs80puld0tp is not listed on IDEAS
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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Trade and Globalization

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    Cited by:

    1. 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.
    2. Guglielmo Maria Caporale & Anamaria Diana Sova & Robert Sova, 2024. "The Covid‐19 pandemic and European trade flows: Evidence from a dynamic panel model," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(3), pages 2563-2580, July.
    3. Zheng Zheng Li & Yidong Xiao & Chi-Wei Su, 2021. "Does COVID-19 Drive Stock Price Bubbles in Medical Mask?," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 2(4), pages 1-6.
    4. Kazunobu Hayakawa & Hiroshi Mukunoki, 2021. "Impacts of COVID‐19 on Global Value Chains," The Developing Economies, Institute of Developing Economies, vol. 59(2), pages 154-177, June.
    5. Chad P. Bown, 2022. "How COVID‐19 Medical Supply Shortages Led to Extraordinary Trade and Industrial Policy," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(1), pages 114-135, January.
    6. Felbermayr, Gabriel & Gans, Steffen & Mahlkow, Hendrik & Sandkamp, Alexander-Nikolai, 2021. "Decoupling Europe," Kiel Policy Brief 153, Kiel Institute for the World Economy (IfW Kiel).
    7. Irena Jindřichovská & Erginbay Uğurlu, 2021. "E.U. and China Trends in Trade in Challenging Times," JRFM, MDPI, vol. 14(2), pages 1-19, February.
    8. Kazunobu Hayakawa & Kohei Imai, 2022. "Who sends me face masks? Evidence for the impacts of COVID‐19 on international trade in medical goods," The World Economy, Wiley Blackwell, vol. 45(2), pages 365-385, February.
    9. Hayakawa, Kazunobu & Mukunoki, Hiroshi, 2021. "The impact of COVID-19 on international trade: Evidence from the first shock," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    10. Hiroshi Mukunoki, 2022. "Comment on “How COVID‐19 Medical Supply Shortages Led to Extraordinary Trade and Industrial Policy”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(1), pages 138-139, January.
    11. Holger Görg & Katrin Kamin, 2021. "Globalisierung trifft Geoökonomie," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(11), pages 854-857, November.
    12. Antoine Berthou & Sebastian Stumpner, 2022. "Trade Under Lockdown," Working papers 867, Banque de France.
    13. Tritto, Angela & Haini, Hazwan & Wu, Hongsen, 2024. "Help with strings attached? China’s medical assistance and political allegiances during the Covid-19 pandemic," World Development, Elsevier, vol. 178(C).

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    More about this item

    Keywords

    COVID-19; crisis management; medical equipment; face masks; strategic exports; disaster aid;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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