Firm Recovery during COVID-19 : Six Stylized Facts
Building on prior work that documented the impact of COVID-19 on firms in developing countries using the first wave of Business Pulse Surveys, this paper presents a new set of stylized facts on firm recovery, covering 65,000 observations in 38 coun...
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/862851634563353449/Firm-Recovery-during-COVID-19-Six-Stylized-Facts http://hdl.handle.net/10986/36428 |
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okr-10986-364282021-10-29T05:10:46Z Firm Recovery during COVID-19 : Six Stylized Facts Cirera, Xavier Cruz, Marcio Grover, Arti Iacovone, Leonardo Medvedev, Denis Pereira-Lopez, Mariana Reyes, Santiago CORONAVIRUS COVID-19 PANDEMIC IMPACT FIRM PERFORMANCE RECOVERY EMPLOYMENT SALES REVENUE Building on prior work that documented the impact of COVID-19 on firms in developing countries using the first wave of Business Pulse Surveys, this paper presents a new set of stylized facts on firm recovery, covering 65,000 observations in 38 countries. This paper suggests that: One, since the outset of the pandemic, some aspects of business performance such as sales show signs of partial recovery. Two, other aspects remain challenging, including persistently high uncertainty and financial fragility. Three, recovery is heterogeneous across firms and more sensitive to firm-level attributes such as size, sector, and initial productivity than to country-level differences in the severity of the initial shock. In particular, larger and more productive firms are recovering faster, with implications for competition policy and allocative efficiency. Four, the decline in jobs has been steeper during the initial shock than the expansion in employment during recovery, raising the risk of a "jobless" recovery pattern. Five, the diffusion of digital technology and product innovation accelerated during the pandemic but did so unevenly, further widening gaps between small and large firms. Six, businesses now have more access to policy support, but poorer countries continue to lag behind and appropriate targeting of firms remains a challenge. 2021-10-28T14:09:44Z 2021-10-28T14:09:44Z 2021-10 Working Paper http://documents.worldbank.org/curated/undefined/862851634563353449/Firm-Recovery-during-COVID-19-Six-Stylized-Facts http://hdl.handle.net/10986/36428 English Policy Research Working Paper;No. 9810 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 |
CORONAVIRUS COVID-19 PANDEMIC IMPACT FIRM PERFORMANCE RECOVERY EMPLOYMENT SALES REVENUE |
| spellingShingle |
CORONAVIRUS COVID-19 PANDEMIC IMPACT FIRM PERFORMANCE RECOVERY EMPLOYMENT SALES REVENUE Cirera, Xavier Cruz, Marcio Grover, Arti Iacovone, Leonardo Medvedev, Denis Pereira-Lopez, Mariana Reyes, Santiago Firm Recovery during COVID-19 : Six Stylized Facts |
| relation |
Policy Research Working Paper;No. 9810 |
| description |
Building on prior work that
documented the impact of COVID-19 on firms in developing
countries using the first wave of Business Pulse Surveys,
this paper presents a new set of stylized facts on firm
recovery, covering 65,000 observations in 38 countries. This
paper suggests that: One, since the outset of the pandemic,
some aspects of business performance such as sales show
signs of partial recovery. Two, other aspects remain
challenging, including persistently high uncertainty and
financial fragility. Three, recovery is heterogeneous across
firms and more sensitive to firm-level attributes such as
size, sector, and initial productivity than to country-level
differences in the severity of the initial shock. In
particular, larger and more productive firms are recovering
faster, with implications for competition policy and
allocative efficiency. Four, the decline in jobs has been
steeper during the initial shock than the expansion in
employment during recovery, raising the risk of a
"jobless" recovery pattern. Five, the diffusion of
digital technology and product innovation accelerated during
the pandemic but did so unevenly, further widening gaps
between small and large firms. Six, businesses now have more
access to policy support, but poorer countries continue to
lag behind and appropriate targeting of firms remains a challenge. |
| format |
Working Paper |
| author |
Cirera, Xavier Cruz, Marcio Grover, Arti Iacovone, Leonardo Medvedev, Denis Pereira-Lopez, Mariana Reyes, Santiago |
| author_facet |
Cirera, Xavier Cruz, Marcio Grover, Arti Iacovone, Leonardo Medvedev, Denis Pereira-Lopez, Mariana Reyes, Santiago |
| author_sort |
Cirera, Xavier |
| title |
Firm Recovery during COVID-19 : Six Stylized Facts |
| title_short |
Firm Recovery during COVID-19 : Six Stylized Facts |
| title_full |
Firm Recovery during COVID-19 : Six Stylized Facts |
| title_fullStr |
Firm Recovery during COVID-19 : Six Stylized Facts |
| title_full_unstemmed |
Firm Recovery during COVID-19 : Six Stylized Facts |
| title_sort |
firm recovery during covid-19 : six stylized facts |
| publisher |
World Bank, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/undefined/862851634563353449/Firm-Recovery-during-COVID-19-Six-Stylized-Facts http://hdl.handle.net/10986/36428 |
| _version_ |
1764485229443022848 |