Competition and Firm Recovery Post-COVID-19
This paper examines the impact of the COVID-19 crisis on the reallocation of economic activity across firms, and whether this reallocation depends on the competition environment. The paper uses the World Bank’s Enterprise Surveys COVID-19 Follow-up...
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/132651637073660006/Competition-and-Firm-Recovery-Post-COVID-19 http://hdl.handle.net/10986/36604 |
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okr-10986-366042021-11-19T05:10:46Z Competition and Firm Recovery Post-COVID-19 Bruhn, Miriam Demirguc-Kunt, Asli Singer, Dorothe CORONAVIRUS COVID-19 PANDEMIC RESPONSE GOVERNMENT SUPPORT PRODUCTIVITY FIRM COMPETITION CREATIVE DESTRUCTION ECONOMIC RECOVERY ENTERPRISE SURVEY This paper examines the impact of the COVID-19 crisis on the reallocation of economic activity across firms, and whether this reallocation depends on the competition environment. The paper uses the World Bank’s Enterprise Surveys COVID-19 Follow-up Surveys for about 8,000 firms in 23 emerging and developing countries in Europe and Central Asia, matched with 2019 Enterprise Surveys data. It finds that during the COVID-19 crisis, economic activity was reallocated toward firms with higher pre-crisis labor productivity. Countries with a strong competition environment experienced more reallocation from less productive to more productive firms than countries with a weak competition environment. The evidence also suggests that reallocation from low- to high-productivity firms during the COVID-19 crisis was stronger compared with pre-crisis times. Finally, the analysis shows that government support measures implemented in response to the crisis may have adverse effects on competition and productivity growth since support went to less productive and larger firms, regardless of their pre-crisis innovation. 2021-11-18T18:17:11Z 2021-11-18T18:17:11Z 2021-11 Working Paper http://documents.worldbank.org/curated/undefined/132651637073660006/Competition-and-Firm-Recovery-Post-COVID-19 http://hdl.handle.net/10986/36604 English Policy Research Working Paper;No. 9851 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 |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
| topic |
CORONAVIRUS COVID-19 PANDEMIC RESPONSE GOVERNMENT SUPPORT PRODUCTIVITY FIRM COMPETITION CREATIVE DESTRUCTION ECONOMIC RECOVERY ENTERPRISE SURVEY |
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CORONAVIRUS COVID-19 PANDEMIC RESPONSE GOVERNMENT SUPPORT PRODUCTIVITY FIRM COMPETITION CREATIVE DESTRUCTION ECONOMIC RECOVERY ENTERPRISE SURVEY Bruhn, Miriam Demirguc-Kunt, Asli Singer, Dorothe Competition and Firm Recovery Post-COVID-19 |
| relation |
Policy Research Working Paper;No. 9851 |
| description |
This paper examines the impact of the
COVID-19 crisis on the reallocation of economic activity
across firms, and whether this reallocation depends on the
competition environment. The paper uses the World Bank’s
Enterprise Surveys COVID-19 Follow-up Surveys for about
8,000 firms in 23 emerging and developing countries in
Europe and Central Asia, matched with 2019 Enterprise
Surveys data. It finds that during the COVID-19 crisis,
economic activity was reallocated toward firms with higher
pre-crisis labor productivity. Countries with a strong
competition environment experienced more reallocation from
less productive to more productive firms than countries with
a weak competition environment. The evidence also suggests
that reallocation from low- to high-productivity firms
during the COVID-19 crisis was stronger compared with
pre-crisis times. Finally, the analysis shows that
government support measures implemented in response to the
crisis may have adverse effects on competition and
productivity growth since support went to less productive
and larger firms, regardless of their pre-crisis innovation. |
| format |
Working Paper |
| author |
Bruhn, Miriam Demirguc-Kunt, Asli Singer, Dorothe |
| author_facet |
Bruhn, Miriam Demirguc-Kunt, Asli Singer, Dorothe |
| author_sort |
Bruhn, Miriam |
| title |
Competition and Firm Recovery Post-COVID-19 |
| title_short |
Competition and Firm Recovery Post-COVID-19 |
| title_full |
Competition and Firm Recovery Post-COVID-19 |
| title_fullStr |
Competition and Firm Recovery Post-COVID-19 |
| title_full_unstemmed |
Competition and Firm Recovery Post-COVID-19 |
| title_sort |
competition and firm recovery post-covid-19 |
| publisher |
World Bank, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/undefined/132651637073660006/Competition-and-Firm-Recovery-Post-COVID-19 http://hdl.handle.net/10986/36604 |
| _version_ |
1764485595021705216 |