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Productivity and responses to the pandemic: Firm-level evidence

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  • Harasztosi, Péter
  • Savšek, Simon

Abstract

In this paper, we empirically assess repercussions of the pandemic on the firm-level productivity worldwide. COVID-19 shock was very heterogeneous across sectors. Our findings show that firms' responses to the shock also varied within sectors: more productive firms coped with the crisis better in terms of closures and employment adjustments. Besides, they were more likely to speed up some digitalization processes. These findings imply that the recent crisis could amplify the difference between highly productive and less productive firms. As regards the governments' policy measures, we find strong utilization at the firm level, but very little differentiation across productivity quantiles, suggesting room for a more targeted approach in the reminder of the pandemic.

Suggested Citation

  • Harasztosi, Péter & Savšek, Simon, 2022. "Productivity and responses to the pandemic: Firm-level evidence," EIB Working Papers 2022/09, European Investment Bank (EIB).
    • Handle: RePEc:zbw:eibwps:202209
    DOI: 10.2867/011145
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    References listed on IDEAS

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    1. Erica Bosio & Filip Jolevski & Joseph Lemoine & Rita Ramalho, 2020. "Survival of firms in developing economies during economic crisis," Vox eBook Chapters, in: Simeon Djankov & Ugo Panizza (ed.), COVID-19 in Developing Economies, edition 1, volume 1, chapter 1, pages 157-174, Centre for Economic Policy Research.
    2. Nicholas Bloom & Philip Bunn & Paul Mizen & Pawel Smietanka & Gregory Thwaites, 2020. "The Impact of Covid-19 on Productivity," NBER Working Papers 28233, National Bureau of Economic Research, Inc.
    3. Apedo Amah,Marie Christine & Avdiu,Besart & Cirera,Xavier & Vargas Da Cruz,Marcio Jose & Davies,Elwyn Adriaan Robin & Grover,Arti Goswami & Iacovone,Leonardo & Kilinc,Umut & Medvedev,Denis & Maduko,Fr, 2020. "Unmasking the Impact of COVID-19 on Businesses : Firm Level Evidence from Across the World," Policy Research Working Paper Series 9434, The World Bank.
    4. Bosio,Erica & Djankov,Simeon & Jolevski,Filip & Ramalho,Rita, 2020. "Survival of Firms during Economic Crisis," Policy Research Working Paper Series 9239, The World Bank.
    5. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "COVID-19 Is Also a Reallocation Shock," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 329-383.
    6. Dan Andrews & Andrew Charlton & Angus Moore, 2021. "COVID-19, productivity and reallocation: Timely evidence from three OECD countries," OECD Economics Department Working Papers 1676, OECD Publishing.
    7. Miklós Koren & Rita Pető, 2020. "Business disruptions from social distancing," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-14, September.
    8. Santos, Cezar & Kozeniauskas, Nicholas & Moreira, Pedro, 2020. "Covid-19 and Firms: Productivity and Government Policies," CEPR Discussion Papers 15156, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Brault, Julien, 2023. "Recent trends in EU corporate demography and policy: COVID and beyond," EIF Working Paper Series 2023/90, European Investment Fund (EIF).

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    Keywords

    Covid-19; Productivity; Enterprise Survey;
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