Impacts of Vaccination on International Trade During the Pandemic Era.

This paper examines how COVID-19 vaccinations change international trade. We analyze monthly level trade data from January 2020 to March 2022 that cover the bilateral exports from 40 reporting countries to 220 partner countries. Our findings can be summarized as follows. On average, the effects of vaccination rates in importing and exporting countries on exports were found to be insignificant. When considering the income level, we also did not find significant effects of vaccination rates in high- and low-income countries on exports. In contrast, the rise of vaccination rates in low-income countries significantly increased their exports though no significant increase in exports was detected when vaccination rates rose in high-income countries. These results imply that since low-income countries are mainly engaged in labor-intensive industries, the relaxation of lockdown orders (i.e., movement and gathering restrictions) driven by the rise of vaccination rates plays a crucial role in production activities in low-income countries.