On May 22, 2024, Faculty of Finance at City University of Macau organized the seventeenth Finance Salon (2023-2024) at the Taipa campus. The salon was delivered by Dr Gong Chi a researcher from Business School of Northeast University. His research paper titled "The Impact of Differential COVID-19 Pandemic Containment Policies on International Trade and Capital Flows". The article develops a two-stage, two-country model to study the impact of different COVID-19 containment policies on international trade and capital flows. The theoretical analysis suggests that asymmetric labor supply shocks caused by the pandemic lead to capital flowing from more severely affected countries to less affected ones, resulting in persistent current account deficits for the former. The greater the asymmetry in supply shocks, the more pronounced the effects on cross-border capital and trade flows. As the pandemic subsides, these flows reverse, leading to significant fluctuations in the pandemic cycle. However, globalization acts as a risk-sharing mechanism, mitigating potential welfare losses. The article investigates how specific containment policies, such as workplace closures and home isolation, affect trade and capital flows using panel data from 42 countries. Contrary to results from high-frequency data, empirical findings confirm the model’s key predictions, indicating that stricter temporary containment measures, while initially suppressing economic activity, may reduce COVID-19 cases and lead to persistent current account surpluses and capital inflows over the longer term.
Dr. Gong currently works as a researcher at Northeast Normal University and standing director of the Asia-Pacific Association of Economics and Management. His research focuses on macroeconomics, international finance and corporate innovation. He has published articles in journals such Economic Research, Economic Theory and Business Management, Journal of International Money and Finance.
During this Finance Salon, Dr. Gong shared his latest research findings and had in-depth exchanges with teachers of Faculty of Finance. The Finance Salon organized by Faculty of Finance at City University of Macau serves as a platform for exchanging academic ideas and fostering academic awareness. With finance as the main focus, we invite senior scholars/experts from academia and the financial industry to engage in research discussions on cutting-edge topics and share industry development trends, aiming to provide a fresh academic experience and thinking model for CityU students and members of the faculty. Through activities like the Finance Salon, we hope to offer graduate students a better academic platform, encouraging further exploration and research on academic issues.