Government policy stringency and import flows from China evidence from Malaysia

This study examines the indirect effects of Malaysia’s COVID-19 lockdown measures on imports from China, Malaysia’s key trading partner, from January 2020 to April 2022. Using pooled regression analysis, the findings show that stricter lockdown conditions significantly reduced imports from China, largely due to shifts in consumer behaviour and disruptions linked to containment measures. Employing the Stringency Index as a measure of government response intensity, the study finds that increases in Malaysia’s Stringency Index are associated with lower import values from China. This negative relationship aligns with evidence from Zhao et al. [ 34 ] and Xu et al. [ 29 ], who similarly reported adverse pandemic effects on trade flows. While the gradual easing of restrictions is expected to support trade recovery, the study highlights the need for proactive, trade-facilitating policies to accelerate the rebound as Malaysia transitions out of stringent lockdown conditions.