Globally Engaged Firms in the COVID-19 Crisis

This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich survey data of nearly 65,000 firm-year observations in 45 countries spanning three waves of data collection. The findings are organ...

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Main Authors: Constantinescu, Cristina, Fernandes, Ana Margarida, Grover, Arti, Poupakis, Stavros, Reyes, Santiago
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2022
Subjects:
Online Access:http://documents.worldbank.org/curated/en/099358404042267302/IDU0ee5e862a091220479d0ab0a016c582c2bd2a
http://hdl.handle.net/10986/37272
id okr-10986-37272
recordtype oai_dc
spelling okr-10986-372722022-04-08T05:10:35Z Globally Engaged Firms in the COVID-19 Crisis Constantinescu, Cristina Fernandes, Ana Margarida Grover, Arti Poupakis, Stavros Reyes, Santiago GLOBAL VALUE CHAINS COVID-19 PANDEMIC IMPACT ON FIRMS CORONAVIRUS TRADE EXPORT COVID IMPACT ON EXPORTERS RECOVERY BUSINESS DISRUPTION SUPPLY CHAIN DISRUPTION GLOBALLY ENGAGED FIRMS This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich survey data of nearly 65,000 firm-year observations in 45 countries spanning three waves of data collection. The findings are organized in a series of stylized facts, which suggest that although the pandemic had an immediate adverse impact on most firms, the globally engaged ones are recovering faster, possibly due to their higher capabilities. Among globally engaged firms, those directly involved with international markets show better recovery than the ones that were indirectly involved. These results mask wide variation by firm traits, sectoral attributes, and country characteristics. At the core of the recovery of globally engaged firms is their heightened response to the crisis by finding novel ways to adapt supply chains even in the presence of lockdowns and uncertainty. These firms swiftly digitalized, introduced new products and changed their markets and sources of inputs. Over and above their capabilities, global engagement cushions firms against shocks. Policymakers could therefore facilitate global linkages by providing information on potential markets and products, by making production flexible in terms of facilitating remote work, reducing the rigidity of contracts; and incentivizing financial institutions to issue instruments that reduce uncertainty risk. 2022-04-07T15:25:32Z 2022-04-07T15:25:32Z 2022-04 Working Paper http://documents.worldbank.org/curated/en/099358404042267302/IDU0ee5e862a091220479d0ab0a016c582c2bd2a http://hdl.handle.net/10986/37272 English Policy Research Working Paper;9991 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic GLOBAL VALUE CHAINS
COVID-19
PANDEMIC IMPACT ON FIRMS
CORONAVIRUS
TRADE
EXPORT
COVID IMPACT ON EXPORTERS
RECOVERY
BUSINESS DISRUPTION
SUPPLY CHAIN DISRUPTION
GLOBALLY ENGAGED FIRMS
spellingShingle GLOBAL VALUE CHAINS
COVID-19
PANDEMIC IMPACT ON FIRMS
CORONAVIRUS
TRADE
EXPORT
COVID IMPACT ON EXPORTERS
RECOVERY
BUSINESS DISRUPTION
SUPPLY CHAIN DISRUPTION
GLOBALLY ENGAGED FIRMS
Constantinescu, Cristina
Fernandes, Ana Margarida
Grover, Arti
Poupakis, Stavros
Reyes, Santiago
Globally Engaged Firms in the COVID-19 Crisis
relation Policy Research Working Paper;9991
description This paper analyzes the initial impact and recovery of globally engaged firms from the COVID-19 crisis. It uses rich survey data of nearly 65,000 firm-year observations in 45 countries spanning three waves of data collection. The findings are organized in a series of stylized facts, which suggest that although the pandemic had an immediate adverse impact on most firms, the globally engaged ones are recovering faster, possibly due to their higher capabilities. Among globally engaged firms, those directly involved with international markets show better recovery than the ones that were indirectly involved. These results mask wide variation by firm traits, sectoral attributes, and country characteristics. At the core of the recovery of globally engaged firms is their heightened response to the crisis by finding novel ways to adapt supply chains even in the presence of lockdowns and uncertainty. These firms swiftly digitalized, introduced new products and changed their markets and sources of inputs. Over and above their capabilities, global engagement cushions firms against shocks. Policymakers could therefore facilitate global linkages by providing information on potential markets and products, by making production flexible in terms of facilitating remote work, reducing the rigidity of contracts; and incentivizing financial institutions to issue instruments that reduce uncertainty risk.
format Working Paper
author Constantinescu, Cristina
Fernandes, Ana Margarida
Grover, Arti
Poupakis, Stavros
Reyes, Santiago
author_facet Constantinescu, Cristina
Fernandes, Ana Margarida
Grover, Arti
Poupakis, Stavros
Reyes, Santiago
author_sort Constantinescu, Cristina
title Globally Engaged Firms in the COVID-19 Crisis
title_short Globally Engaged Firms in the COVID-19 Crisis
title_full Globally Engaged Firms in the COVID-19 Crisis
title_fullStr Globally Engaged Firms in the COVID-19 Crisis
title_full_unstemmed Globally Engaged Firms in the COVID-19 Crisis
title_sort globally engaged firms in the covid-19 crisis
publisher World Bank, Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/en/099358404042267302/IDU0ee5e862a091220479d0ab0a016c582c2bd2a
http://hdl.handle.net/10986/37272
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