Unmasking the Impact of COVID-19 on Businesses : Firm Level Evidence from Across the World
This paper provides a comprehensive assessment of the short-term impact of the COVID-19 pandemic on businesses worldwide with a focus on developing countries. The results are based on a novel data set collected by the World Bank Group and several p...
| Main Authors: | , , , , , , , , , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/399751602248069405/Unmasking-the-Impact-of-COVID-19-on-Businesses-Firm-Level-Evidence-from-Across-the-World http://hdl.handle.net/10986/34626 |
| Summary: | This paper provides a comprehensive
assessment of the short-term impact of the COVID-19 pandemic
on businesses worldwide with a focus on developing
countries. The results are based on a novel data set
collected by the World Bank Group and several partner
institutions in 51 countries covering more than 100,000
businesses. The paper provides several stylized facts.
First, the COVID-19 shock has been severe and widespread
across firms, with persistent negative impact on sales.
Second, the employment adjustment has operated mostly along
the intensive margin (that is leave of absence and reduction
in hours), with a small share of firms laying off workers.
Third, smaller firms are disproportionately facing greater
financial constraints. Fourth, firms are increasingly
relying on digital solutions as a response to the shock.
Fifth, there is great uncertainty about the future,
especially among firms that have experienced a larger drop
in sales, which is associated with job losses. These
findings provide a better understanding of the magnitude and
distribution of the shock, the main channels affecting
businesses, and how firms are adjusting. The paper concludes
by discussing some avenues for future research. |
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