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Has Digitalisation Alleviated the Impact of the COVID-19 on Manufacturing Sectors? Evidence from Sectoral-Level and Cross-Country Data

In: Digital Transformation in Industry

Author

Listed:
  • Tien-Ming Yip

    (Universiti Malaya)

  • Wee-Yeap Lau

    (Universiti Malaya)

  • Shankaran Nambiar

    (Malaysian Institute of Economic Research)

Abstract

This study is motivated by the repeated call from international organisations on the potential role of digitalisation in alleviating the adverse impact of the COVID-19 pandemic on the manufacturing sector's performance. Using a balanced panel data of 24 sub-sectors in Malaysia's manufacturing sector from January 2020 to December 2020, the empirical result shows that the COVID-19 pandemic significantly and adversely impacts manufacturing sales performance if digitalisation is low. However, the negative effect diminishes with a rising level of digitalisation. Further analysis using cross-country datasets from 79 countries documents similar results. This implies that the key finding of a mitigating effect of digitalisation is not confined to Malaysia but widespread across countries worldwide. Overall, the empirical results indicate that digitalisation is the key to the sustainable growth of the manufacturing sector during a health crisis.

Suggested Citation

  • Tien-Ming Yip & Wee-Yeap Lau & Shankaran Nambiar, 2023. "Has Digitalisation Alleviated the Impact of the COVID-19 on Manufacturing Sectors? Evidence from Sectoral-Level and Cross-Country Data," Lecture Notes in Information Systems and Organization, in: Vikas Kumar & Grigorios L. Kyriakopoulos & Victoria Akberdina & Evgeny Kuzmin (ed.), Digital Transformation in Industry, pages 419-436, Springer.
    • Handle: RePEc:spr:lnichp:978-3-031-30351-7_31
    DOI: 10.1007/978-3-031-30351-7_31
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