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Digitalization and resilience

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  • Copestake, Alexander
  • Estefania-Flores, Julia
  • Furceri, Davide

Abstract

This paper investigates the role of digitalization in improving economic resilience. Using balance sheet data from 24,000 firms in 75 countries, and a difference-in-differences approach, we find that firms in industries that are more digitalized experience lower revenue losses following recessions. Early data since the outbreak of the COVID-19 pandemic suggest an even larger effect during the resulting recessions. These results are robust across a wide range of digitalization measures—such as ICT input and employment shares, robot usage, online sales, intangible assets and digital skills listed on online profiles—and several alternative specifications.

Suggested Citation

  • Copestake, Alexander & Estefania-Flores, Julia & Furceri, Davide, 2024. "Digitalization and resilience," Research Policy, Elsevier, vol. 53(3).
    • Handle: RePEc:eee:respol:v:53:y:2024:i:3:s0048733323002329
    DOI: 10.1016/j.respol.2023.104948
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    3. Zheng, Mingbo & Zhang, Xinyu, 2025. "Digitalization and renewable energy development: Analysis based on cross-country panel data," Energy, Elsevier, vol. 319(C).
    4. Sun, Kaili & Wang, Haohan & Ye, Shengchao, 2025. "How does digital transformation enhance industrial chain resilience? Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).
    5. Huang, Siyu & Luan, Zhongwei & Xie, Xinyan, 2025. "Green board of directors and corporate resilience," Finance Research Letters, Elsevier, vol. 81(C).
    6. Zhu, Jialei & Xiong, Zhengde & Lu, Xinxin & Yao, Zhu, 2025. "Does ESG rating disagreement impede corporate green innovation?," Global Finance Journal, Elsevier, vol. 64(C).
    7. Abbas, Jawad & Dabić, Marina & Stojčić, Nebojša, 2026. "Digital divide in industry 5.0: Role of generative AI knowledge bases and intellectual capital in organizational resilience performance under territorial proximity," Technovation, Elsevier, vol. 149(C).
    8. Oughton, Edward J. & Amaglobeli, David & Moszoro, Marian, 2023. "What would it cost to connect the unconnected? Estimating global universal broadband infrastructure investment," Telecommunications Policy, Elsevier, vol. 47(10).
    9. Zhou, Yuwen & Shi, Xin, 2025. "How does digital technology adoption affect corporate employment? Evidence from China," Economic Modelling, Elsevier, vol. 147(C).
    10. Abbas, Jawad, 2026. "Resource orchestration and firm competitive performance: The role of knowledge absorptive capacity in converting business analytics into strategic competitive advantage," Technological Forecasting and Social Change, Elsevier, vol. 222(C).
    11. Adelheid Holl & Ruth Rama & Hannah Hammond, 2025. "COVID-19 and Business Digitalization: Unveiling the Effects of Concurrent Strategies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(4), pages 15456-15490, October.
    12. Azuraidah Taib & Yunita Awang & Jamaliah Said & Noor Erni Fazlina Mohd Akhir, 2025. "Unlocking the Role of Digital Capabilities in the Resilience of Malaysian Small and Medium Practices (SMPs)," Information Management and Business Review, AMH International, vol. 17(1), pages 171-183.
    13. Chiara Franco & Filomena Pietrovito, 2024. "Drivers of firms’ digital activities in response to the Covid-19 pandemic," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 14(3), pages 695-726, September.
    14. Franco, Chiara & Pietrovito, Filomena, 2024. "Drivers of firms' digital activities in response to the Covid-19 pandemic," Economics & Statistics Discussion Papers esdp24096, University of Molise, Department of Economics.
    15. Dai, Zhihui & Niu, Yue, 2025. "Assessing export resilience and its dimensional subdivision in China's labor-intensive manufacturing industry," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1854-1875.
    16. Zhao, Jun & Lei, Yalin & Huang, Hongyun & Zhao, Xiaomeng, 2025. "Empowering resilience of urban energy system in China: How does digital economy matter?," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1575-1594.

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    Keywords

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    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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