For example, stay-at-home restrictions may provoke changes in consumption (e.g., playing golf is forbidden, so golf balls are not purchased). Second, the Covid-19 crisis could have reduced consumption and investment in j, generating an economic slump in this country. Third, the Covid-19 crisis could have increased the costs of trading due to a reduction in the availability and frequency of transport means. Fourth, containment measures in the domestic market could have affected firm i’s productivity. For example, it could have led to temporary shutdowns of i’s production facilities or to operate with fewer workers due to social distancing measures. Productivity could also be affected by a lack of intermediate inputs due to production shutdowns of local and foreign suppliers.

Based on an unconditional quantile regression approach, we show that PIN exhibit asymmetric dependency with liquidity and trading costs. Furthermore, building a customized database that contains all insider transactions on the Bucharest Stock Exchange, we reveal that these types of orders monotonically increase the information asymmetry from the 50th to the 90th quantile throughout the PIN distribution. Finally, we bring strong empirical evidence associating the level of information asymmetry to the level of fake news related to the COVID-19 pandemic. Compared to the pre-COVID-19 period, foreign investors display significant and stronger negative feedback trading during the COVID-19 crisis. However, the significant negative feedback trading of institution investors becomes weaker and insignificant.

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Soybean exports to China accounted for much of the increase in 2020, concentrated in the final 3 months of 2020 and offsetting declines in the value of many other U.S. agricultural exports in the early months of the pandemic. Based on our results, another possible direction for future research is to find suitable strategies in an active portfolio management context, based on the premise that processing value-relevant information can lead to abnormal returns. These findings, especially the one linking insider trading with information asymmetry, provide a novel perspective for researchers who look for a better understanding of the price-discovery process. A slow price discovery process means that public disclosure of these trades is not sufficient to achieve price efficiency. Lastly, these results are also useful to policy makers in terms of market integrity and fairness in the capital market. Interestingly, COVID-19 related variables exhibit a significant impact on PIN, but only during the lockdown period, when panic is at its highest.

Third, we explored whether the impact of containment measures was similar for manufacturers relative to wholesalers and retailers.15
Our expectation was that manufacturers had closer ties with their foreign customers and suppliers than did wholesalers. Therefore, we expected trade relations to be more resilient to a crisis among manufacturers than wholesalers and retailers. Column 2 of panel C shows that the negative effect of containment measures on the value of exports was smaller if the firm participating in the flow was a manufacturer. The probability of ceasing an export relationship was also smaller for manufacturers (Column 4). We found that the effect of containment measures on the value of imports (Column 6) and the probability of ceasing an import relationship (Column 8) was similar for manufacturers and wholesalers and retailers.

USITC Response to COVID-19

First, not all of the subsidies awarded in 2021 have been recorded yet, and this will go a long way to narrow the gap with the 2020 total, if it doesn’t eliminate the gap entirely. Secondly, even if no more policy interventions in 2021 were documented, the 4,016 total is still https://www.bigshotrading.info/ 25% larger than the mean number of commercial policy interventions recorded during the pre-pandemic years 2015 to 2019. The value and share of U.S. exports of agricultural products to China continued to rebound and supported the export rise in 2021, similar to 2020.

Finally, it offers a preliminary outlook on the future of trade, incorporating certain paradigm shifts that have been expedited by unique facets of the current crisis. Maritime trade is indispensable for global growth and prosperity – around 80 per cent of world trade by volume and more than 70 per cent by value is seaborne. The maritime sector is also at the heart of trade and economic activity for the Commonwealth. In addition, volatility has a negative impact on information asymmetry (PIN), which is in line with previous studies (Sankaraguruswamy et al. 2013; Agudelo et al. 2015). However, the impact is statistically significant during extreme events of information asymmetry and not during normal market conditions. Using as filter our analysed time horizon and the 12 stocks that define our data sample, 146 insider transactions were reported to the Bucharest Stock Exchange.

COVID-19 pandemic effect on trading and returns: Evidence from the Chinese stock market

The World Health Organization target of vaccinating 40 percent of their populations by the end of 2021 is increasingly out of reach. Facundo Calvo overviews the recent economic trends of agricultural fertilizers and suggests strategies to facilitate fertilizer trade in order for the World Trade Organization to deliver on food security. Simon J. Evenett is founder of the St. Gallen Endowment for Prosperity Through Trade, the institutional https://www.bigshotrading.info/blog/trading-the-coronavirus/ home of both the Global Trade Alert and Digital Policy Alert. Official websites use .gov
A .gov website belongs to an official government organization in the United States. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. We confirm that the manuscript has been submitted solely to the Financial Innovation and that it is not published, in press, or submitted elsewhere.

• Globally, low-income countries are estimated to have vaccinated less than 3 percent of their populations.
• Contrarily, the containment measures adopted by countries where Spanish imports originated had no effect on the value of goods imported by Spanish firms.
• These results indicate that the stickiness of inter-firm relationships, that tend to be stronger for manufacturers participating in GVCs, made exports more resilient to a health crisis.
• And the results that the contemporaneous relations between their net flows and returns are persistent and without any reversal subsequently support the information advantage hypothesis for two group investors.
• Considering the aforementioned arguments, we adopt as the baseline specification the unconditional quantile regression (UQR) for panel data developed by Borgen (2016), which accounts for high-dimensional fixed effects.
• Espinosa-Méndez and Arias (2021) show significantly increased herding behavior in European markets during the COVID-19 pandemic.

More specifically, the impact of COVID-19 related fake news is negatively related to PIN on the Bucharest Stock Exchange, but only during the lockdown period and episodes of medium (50th quantile) or high (75th quantile) information asymmetry, confirming the first hypothesis. The same conclusion can be drawn for both media coverage and Infodemic index which validates the second stated hypothesis. This implies that the increase in uncertainty due to the pandemic in the Romanian capital market has led to a decrease in information asymmetry during periods of bear market. Moreover, during periods of sustained recovery, the information asymmetry measured by PIN experienced smooth and gradual increases.

Possibility to delay the invalidation of the customs declaration for export or the re-export declaration

Article 139 UCC DA may allow these goods to be declared by any other act, e.g. by the sole act of crossing the border, according to Article 141(1)(d) UCC DA. The transit procedures seem to function smoothly despite the precautionary measures applied to prevent the outbreak of COVID-19, i.e. limiting physical contacts and the use of paper-based documents. The presentation of goods to customs could be performed in a ‘place approved by the customs authorities’ referred to in Article 139(1) UCC. This facilitation allows traders to present the goods, e.g. critical goods, directly at their premises. Accordingly, if an economic operator cannot meet the deadline for submitting the supplementary declaration due to reasons linked to the COVID-19 pandemic, he or she should inform the supervising customs office as soon as possible.

• Another key contribution of our research is to take explicitly into account the influence of the pandemic in the rest of world on bilateral trade flows.
• The same conclusion can be drawn for both media coverage and Infodemic index which validates the second stated hypothesis.
• Besides, Article 7(2) of this Convention allows customs to grant a longer period than that provided in the Annex and even extend the initial period.
• Foster et al. (2011) show that institutional trading is not correlated with contemporaneous returns.
• In general, these operations have a certain period in which they take place, with the issuer being able to repurchase only a maximum of 10% out of the total number of shares.
• Finally, policy makers should consider that the negative effect of containment measures on trade was heterogeneous across countries, products, and firms.
• Our estimates also show that the value of Spanish exports between February and July 2020 decreased by 8% relative to a situation without the Covid-19 crisis.