Dela-Dem Doe Fiankor , Abraham Lartey , Christian Ritzel
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Agri-food importing firms amid a global health crisis
This paper exploits daily customs transaction data on the universe of Swiss agri-food importing firms to assess the response of firms to a global shock. Estimating a linear model that regresses product-level import margins on daily COVID19 shocks and a host of fixed effects, we find that the pandemic had a substantial trade-reducing effect on imports. The trade effects were driven mainly by a reduction in the number of importing firms (i.e., 63% of the total effect), and much less by the number of products imported and the average import value per product per firm. We explore several sources of heterogeneity and show, among others, that larger and incumbent firms were affected more by the trade adjustments. Our results also reveal that the relative contribution of each import margin to the decline in aggregate imports depends on the level of data aggregation (i.e., daily, weekly or monthly). Finally, we validate and confirm our main findings by testing two mechanisms: (i) third-country supply-side effects using insights from structural gravity models and (ii) changes to consumer demand using consumer mobility, and retailer and consumer scanner data.
期刊介绍:
Food Policy is a multidisciplinary journal publishing original research and novel evidence on issues in the formulation, implementation, and evaluation of policies for the food sector in developing, transition, and advanced economies.
Our main focus is on the economic and social aspect of food policy, and we prioritize empirical studies informing international food policy debates. Provided that articles make a clear and explicit contribution to food policy debates of international interest, we consider papers from any of the social sciences. Papers from other disciplines (e.g., law) will be considered only if they provide a key policy contribution, and are written in a style which is accessible to a social science readership.