The impact of the pandemic year on export: Lithuanian gravity

Abstract

In this paper I construct gravity model for Lithuania and analyse pandemic-related changes of Lithuania’s goods export. Results suggest that pandemic resulted in a decreased export of aircraft, railway products, meat and preparations of cereals and milk. Positive influence was registered for beverages and spirits, tobacco, furniture, electric appliances, fuels, vehicles and medical and pharmaceutical products. I find that Lithuania’s export of products of higher complexity was more often affected positively by the pandemic. Results show positive influence of the pandemic for Lithuania’s export to countries of higher economic complexity and the ones having stronger trade relations with Lithuania. There was no relationship between the effects of the pandemic and the size of the destination countries.