COVID-19, air transportation, and international trade in the ASEAN+5 region

Zhang, Anming and Sun, Xiaoqian and Wandelt, Sebastian and Zhang, Yahua ORCID: https://orcid.org/0000-0003-1522-3402 and Xu, Shiteng and Shen, Ronghua (2021) COVID-19, air transportation, and international trade in the ASEAN+5 region. Discussion Paper. Economic Research Institute for ASEAN and East Asia (ERIA) . [Report]


Abstract

This paper provides an in-depth description of the coronavirus disease (COVID-19) pandemic and its interactions with air transportation in the Association of Southeast Asian Nations (ASEAN) + 5 region, and then links the changes in air connectivity to trade using a gravity regression model. We find that almost all the countries probably reacted too late in their decision to reduce flights in the early stage of the pandemic. As the pandemic evolved, most countries have significantly cut the number of flight connections, especially international flights. The reduced connectivity is found to have a significantly negative impact on trade for time-sensitive merchandise that is essential to consumers and businesses. This points to the importance of the region seeking alternative arrangements to restore air connectivity. We offer a way to construct optimal travel bubbles by using the introduced risk indexes. Other policy issues such as uniform standards and regulations, and regional ‘open skies’, are also discussed.


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Item Type: Report (Discussion Paper)
Item Status: Live Archive
Additional Information: Permanent restricted access to Published version in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Faculty/School / Institute/Centre: Current - Faculty of Business, Education, Law and Arts - School of Business (18 Jan 2021 -)
Date Deposited: 13 Sep 2021 04:32
Last Modified: 13 Sep 2021 04:32
Uncontrolled Keywords: ASEAN, ASEAN+5, COVID-19, air transportation, trade
Fields of Research (2008): 15 Commerce, Management, Tourism and Services > 1507 Transportation and Freight Services > 150701 Air Transportation and Freight Services
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
14 Economics > 1402 Applied Economics > 140217 Transport Economics
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380117 Transport economics
38 ECONOMICS > 3801 Applied economics > 380110 International economics
35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3509 Transportation, logistics and supply chains > 350901 Air transportation and freight services
Socio-Economic Objectives (2008): B Economic Development > 88 Transport > 8803 Aerospace Transport > 880301 Air Freight
B Economic Development > 88 Transport > 8803 Aerospace Transport > 880302 Air Passenger Transport
Socio-Economic Objectives (2020): 27 TRANSPORT > 2701 Aerospace transport > 270102 Air passenger transport
27 TRANSPORT > 2701 Aerospace transport > 270101 Air freight
URI: http://eprints.usq.edu.au/id/eprint/43648

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