more reluctant to impose lockdowns. To control for these idiosyncratic factors that also affect imports and can be correlated with our foreign lockdown exposure measure, our specification includes country fixed effects. The prevalence of containment measures can also be correlated with other relevant factors over the time dimension. For example, as the virus spreads and more countries go under lockdowns, rising health and economic uncertainty may boost households’ precautionary saving, and revised expectations in financial markets may lead to a tightening of
, historical damages, exposures to future climate change risks) and the country’s trade patterns (upstream and downstream trade shares with all trade partners including the home country). With these exposure measures, we construct a pair of global spillover indexes of upstream and downstream climate risks. The spillover indexes capture the extent globalization reduces the cross-country dispersion in exposures to global climate risks. Intuitively, consider a landlocked country a in the high latitudes. If country A was a closed economy, it might have limited exposures to