Impact of Covid-19 containment measures on trade

Combining Spanish firm-level monthly trade data with country-level Covid-19 containment measures over February-July 2020, we show that the value of exports decreased more in destinations that introduced strict containment measures, whereas the value of imports remained unaffected. Strict containment measures in a partner country increased the probability of a firm ceasing to trade with it. Negative effects were concentrated between March and May 2020. The detrimental effect of containment on exports was larger in destinations where the share of jobs that could be done remotely was low, for goods consumed outside the household, for wholesalers and retailers, and for manufacturers not participating in global value chains.