Impact of COVID-19 on Malaysia’s Bilateral Export: Testing for Heterogeneous Effects in the Product Category

Abstract

This study analyzes the impact of COVID-19 on Malaysia’s bilateral export in three categories of goods. The results show that higher numbers of COVID-19 cases among trading partners has led to higher levels of bilateral export for capital and consumption goods. Meanwhile, incremental increases in a trading partner’s policy stringency index has lowered the level of bilateral export for capital goods. These negative impacts highlight the need for support policies to ensure the survival of domestic producers during the current pandemic.