The covid-19 pandemic has deeply wounded world trade. But one aspect that got less attention is how travel restrictions can hurt trade by preventing business partners from meeting in person. The paper uses business travel costs as a proxy for movement restrictions. The author finds that even now, business travel costs can account for over 85% of trade frictions. During the current pandemic, most travel restrictions are absolute, and not related to increased travel costs that the paper is based on.

Source: Mint November 19, 2020 03:55 UTC