Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence

Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence

This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian “cleansing” of less productive firms. Using firm-level data for 31 economies, the study finds that less productive firms have a higher probabi...

Full description

Bibliographic Details
Main Authors: Muzi, Silvia, Jolevski, Filip, Ueda, Kohei, Viganola, Domenico
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
FIRM SURVIVAL
PRODUCTIVITY
BUSINESS ENVIRONMENT
INNOVATION
DIGITAL ECONOMY
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
Online Access:http://documents.worldbank.org/curated/en/267581621869749674/Productivity-and-Firm-Exit-during-the-COVID-19-Crisis-Cross-Country-Evidence
http://hdl.handle.net/10986/35632
id okr-10986-35632
recordtype oai_dc
spelling okr-10986-356322021-06-02T05:10:47Z Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence Muzi, Silvia Jolevski, Filip Ueda, Kohei Viganola, Domenico FIRM SURVIVAL PRODUCTIVITY BUSINESS ENVIRONMENT INNOVATION DIGITAL ECONOMY CORONAVIRUS COVID-19 PANDEMIC IMPACT This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian “cleansing” of less productive firms. Using firm-level data for 31 economies, the study finds that less productive firms have a higher probability of permanently closing during the crisis, suggesting that the process of cleansing out unproductive arrangements may be at work. The paper also uncovers a strong and negative relationship between firm exit and innovation and digital presence, especially for small firms, confirming the relevance of the ability to adapt to market conditions as a determinant of firm survival. Finally, the study finds evidence of a negative relationship between firm exit and a burdensome business environment, as well as between firm exit and age. 2021-06-01T22:04:29Z 2021-06-01T22:04:29Z 2021-05 Working Paper http://documents.worldbank.org/curated/en/267581621869749674/Productivity-and-Firm-Exit-during-the-COVID-19-Crisis-Cross-Country-Evidence http://hdl.handle.net/10986/35632 English Policy Research Working Paper;No. 9671 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic FIRM SURVIVAL
PRODUCTIVITY
BUSINESS ENVIRONMENT
INNOVATION
DIGITAL ECONOMY
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
spellingShingle FIRM SURVIVAL
PRODUCTIVITY
BUSINESS ENVIRONMENT
INNOVATION
DIGITAL ECONOMY
CORONAVIRUS
COVID-19
PANDEMIC IMPACT
Muzi, Silvia
Jolevski, Filip
Ueda, Kohei
Viganola, Domenico
Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence
relation Policy Research Working Paper;No. 9671
description This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian “cleansing” of less productive firms. Using firm-level data for 31 economies, the study finds that less productive firms have a higher probability of permanently closing during the crisis, suggesting that the process of cleansing out unproductive arrangements may be at work. The paper also uncovers a strong and negative relationship between firm exit and innovation and digital presence, especially for small firms, confirming the relevance of the ability to adapt to market conditions as a determinant of firm survival. Finally, the study finds evidence of a negative relationship between firm exit and a burdensome business environment, as well as between firm exit and age.
format Working Paper
author Muzi, Silvia
Jolevski, Filip
Ueda, Kohei
Viganola, Domenico
author_facet Muzi, Silvia
Jolevski, Filip
Ueda, Kohei
Viganola, Domenico
author_sort Muzi, Silvia
title Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence
title_short Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence
title_full Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence
title_fullStr Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence
title_full_unstemmed Productivity and Firm Exit during the COVID-19 Crisis : Cross-Country Evidence
title_sort productivity and firm exit during the covid-19 crisis : cross-country evidence
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/267581621869749674/Productivity-and-Firm-Exit-during-the-COVID-19-Crisis-Cross-Country-Evidence
http://hdl.handle.net/10986/35632
_version_ 1764483459750821888

Similar Items