(Unintended) Consequences of export restrictions on medical goods during the Covid-19 pandemic

In the first half of 2020, several countries have responded to challenges posed by Covid-19 pandemic restricting their export medical supplies. Such measures are meant increase domestic availability critical goods, and commonly used in times crisis. Yet, not much is known about impact, especially on imposing them. Here we show that bans are, large, counterproductive. Using a model shock diffusion through network international trade, simulate impact restrictions under different scenarios. We observe while they would be beneficial country implementing them isolation, generalized use makes most worse off relative no-ban scenario. As corollary, estimate prices many restrictions. also find cost restraining from small, even when others continue implement Finally, document change countries' position within trade network, suggesting geopolitical implications.