Skip to main content

The Evolution of Romania’s International Trade in Services During the COVID-19 Crisis

  • 120 Accesses

Part of the Springer Proceedings in Business and Economics book series (SPBE)

Abstract

The negative impact of COVID-19 crisis on international trade led to significant unwelcomed consequences for economies all over the world, given the actual scale of globalization and interconnection. While trade in services showed a certain resilience during the financial crisis in 2008, this time, the restriction measures for the containment of the virus and social isolation affected their consumption due to the specific characteristics of their nature: proximity of consumption, intangibility, heterogeneity, and perishability. This paper’s aim is to assess the impact of COVID-19 on Romania’s international trade in services. In this respect, we use monthly data in order to trace the evolution of both exports and imports during 2020 as compared to the previous year. In addition, we evaluate the behavior of the major groups of traded services in the same period, in order to identify changes in the distribution of services. Finally, we compare the evolution of trade in services during the financial and the actual crises. We find that imports of services saw a larger drop than exports. In addition, export of services was less affected than export in goods, while imports of services were more severely affected than the drop in the imports of goods. Travel and tourism was the most affected, while the rest of the most important other sectors show a certain recovery at the end of 2020. The drop in the exports of services in 2020 was double than the one registered during the crisis quarters in 2008–2009.

Keywords

  • International trade
  • Exports of services
  • Imports of services
  • COVID-19 pandemic
  • Romania

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-86641-9_9
  • Chapter length: 14 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   129.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-86641-9
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book
USD   169.99
Price excludes VAT (USA)
Fig. 1

Source Authors’ own elaborations based on Eurostat data

Fig. 2

Source Authors’ own elaborations based on Eurostat data

Fig. 3

Source Authors’ own elaborations based on Eurostat data

Fig. 4

Source Authors’ own elaborations based on National Bank of Romania data

Fig. 5

Source Authors’ own elaborations based on National Bank of Romania data

Fig. 6

Source Authors’ own elaborations based on National Bank of Romania data

Fig. 7

Source Authors’ own elaborations based on National Bank of Romania data

Fig. 8

Source Authors’ own elaborations based on National Bank of Romania data

Fig. 9

Source: Authors’ own elaborations based on National Bank of Romania data

Fig. 10

Source Authors’ own elaborations based on Eurostat data

Fig. 11

Source Authors’ own elaborations based on Eurostat data

References

  • Adegun, O.: The effects of ebola virus on the economy of West Africa through the trade channel. IOSR J. Humanit. Soc. Sci. 19(10) (2014)

    Google Scholar 

  • Ariu, A.: Crisis-proof services: why trade in services did not suffer during the 2008–2009 collapse. J. Int. Econ. 98, 138–149 (2016)

    CrossRef  Google Scholar 

  • Baldwin, R.: The Greater Trade Collapse of 2020: Learnings from the 2008–09 Great Trade Collapse, VoxEu CEPR, April 2020. https://voxeu.org/article/greater-trade-collapse-2020 (2020)

  • Borchert, I., Mattoo, A.: The crisis-resilience of services trade. Serv. Ind. J. 30(14), 1–20 (2009)

    Google Scholar 

  • Bratianu, C.: Toward understanding the complexity of the COVID-19 crisis: a grounded theory approach, Management & Marketing. Chall Knowl Soc 15, 410–423. https://doi.org/10.2478/mmcks-2020-0024 (2020)

  • Burkle, F.M.: Globalization and disasters: issues of public health, state capacity and political action. J. Int. Aff. 59(2), 231–265 (2006)

    Google Scholar 

  • Busu, M., Vargas, M.V., Gherasim, I.A.: An analysis of the economic performances of the retail companies in Romania, management & marketing. Chall. Knowl. Soc. 15(1), 125–133 (2020). https://doi.org/10.2478/mmcks-2020-0008

    CrossRef  Google Scholar 

  • Coates, B., Cowgill, M., Chen, T., Mackey, W.: Shutdown: estimating the COVID-19 employment shock. GRATTAN Institute (2020)

    Google Scholar 

  • Gilson, I., Muramatsu, K.: Health services trade and the COVID-19 pandemic. World Bank Group (2020)

    Google Scholar 

  • Gruszczynski, L.: The COVID-19 pandemic and international trade: temporary turbulence or paradigm shift? Eur. J. Risk Regul. 11(2), 337–342 (2020). https://doi.org/10.1017/err.2020.29

    CrossRef  Google Scholar 

  • Javed, A.: Impact of COVID-19 on Pakistan’s services sector. Jurnal Inovasi Ekonomi 5, 107–116 (2020)

    CrossRef  Google Scholar 

  • Lee, J.W., McKibbin, W.J.: Globalization and disease: the case of SARS. Asian Eco Papers 3(1), 113–131 (2004)

    CrossRef  Google Scholar 

  • Maliszewska, M., Mattoo, A., van der Mensbrugghe, D.: The potential impact of COVID-19 on GDP and trade: A preliminary assessment. World Bank Group, Policy Research Working Paper 9211 (2020).

    Google Scholar 

  • McKibbin, W., Fernando, R.: The global macroeconomic impacts of COVID19: Seven scenarios. Australian National University, CEPAR (2020)

    Google Scholar 

  • Milea, C.: Consequences of covid-19 on the international trade in goods and services: Forecasts, developments, restrictions. Financial Studies, Victor Slăvescu Centre for Financial and Monetary Research, Bucharest, 24, 4 (90), pp. 29–40 (2020)

    Google Scholar 

  • Minodo, A.: Impact of COVID-19 on the trade of goods and services in Spain. Appl. Econ. Anal. 29(85), 58–76 (2021). https://doi.org/10.1108/AEA-11-2020-01562021

    CrossRef  Google Scholar 

  • Moeller, S.: Characteristics of services–a new approach uncovers their value. J. Serv. Mark. 24(5), 359–368 (2010)

    CrossRef  Google Scholar 

  • National Institute of Statistics, Romania (2021). http://statistici.insse.ro:8077/tempo-online/

  • Saif, N.M.A., Ruan, J., Obrenovic, B.: Sustaining trade during COVID-19 pandemic: Establishing a conceptual model including COVID-19 impact. Sustainability 13, 5418 (2021). https://doi.org/10.3390/su13105418

    CrossRef  Google Scholar 

  • Sanda, I., Kedir, A., Ngonze, C., Ikome, F.: Socio-economic impacts of Ebola on Africa. United Nations Economic Commission for Africa (2015)

    Google Scholar 

  • Shingal, A.: Services trade and COVID-19 (2020). https://voxeu.org/article/services-trade-and-covid-19

  • Stramge, R.: The 2020 Covid 19 pandemic and global value chains. J. Indust. Business Econ. 47, 455–465 (2020)

    CrossRef  Google Scholar 

  • Tomé, E., Gromova, E., Hatch, A.: Did the bubble burst? the portuguese economy during COVID-19”, management & marketing. Chall. Knowl. Soc. 15, 477–495. https://doi.org/10.2478/mmcks-2020-0028 (2020)

  • Wolak, R., Kalafatis, S., Harris, P.: An investigation into four characteristics of services. J. Empir. Gen. Mark. Sci. 3, 22–43 (1998)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Paraschiv Dorel Mihai .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Verify currency and authenticity via CrossMark

Cite this paper

Mihai, P.D., Cristina, P.O., AnaMaria, D.A., Daniela, M., Cazabat, G., Ibadula, B. (2021). The Evolution of Romania’s International Trade in Services During the COVID-19 Crisis. In: Dima, A.M., Anghel, I., Dobrea, R.C. (eds) Economic Recovery After COVID-19. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-86641-9_9

Download citation