China and World Output Impact of the Hubei Lockdown During the Coronavirus Outbreak
Forthcoming, Contemporary Economic Policy
18 Pages Posted: 25 Feb 2020 Last revised: 30 Apr 2020
There are 2 versions of this paper
China and World Output Impact of the Hubei Lockdown During the Coronavirus Outbreak
China and World Output Impact of the Hubei Lockdown During the Coronavirus Outbreak
Date Written: April 24, 2020
Abstract
Using a network approach, we estimate the output loss due to the lockdown of the Hubei province triggered by the coronavirus disease (COVID-19). Based on our most conservative estimate, China suffers about 4% loss of output from labor loss, and global output drops by 1% due to the economic contraction in China. About 40% of the impact is indirect, coming from spillovers through the supply chain inside and outside China.
Keywords: coronavirus; COVID-19; production network; labor shock; China; international trade
JEL Classification: E23, E24, F62
Suggested Citation: Suggested Citation