Impact of COVID-19 on International Trade: New Evidence From Economic Sectors

Introduction

Since 1990’s, Trade has raised income by 24% worldwide, 50% for the poorest 40% of the population. The World Bank helps those countries who have suffered from employment, poverty, education, and infrastructure and provides a path for the access to international markets. Trade plays a significant role in the economic growth that reduces poverty, provides job opportunities, and makes better business relations between two different kinds of countries (including developing and developed countries). With the help of Trade reduce the obstacles between developed and developing countries, these obstacles include deter the accessibly in international market, ambiguous regulatory and administrative environment, political environment etc. Although, after globalization still all the developing countries are not experiencing the benefits of international trade due to climate change, culture changes, political change and technological changes. With the help of table 1 and figure 1 reveal that World import and export and import& export value index (2000=100) were increased during 2001-2005, 2006-2010, 2011-2016 but during 2016-2018 import as well as export were in decline.

Sources: World Bank, 2019

Figure 1.

World imports and exports (2000-2018)

Sources: World Bank, 2019Note: 1 represents year 2001-05, 2 represents 2006-10, 3 represents 2011-16, and 4 represents 2016-2018.