Policy Briefs
Which Firms Performed Better in Social Distancing Times?
No.
PB 79
Publisher
ERF
Date
June, 2022
Topic
I. Health
L2. Firm Objectives, Organization, and Behavior
J1. Demographic Economics
In a nutshell
- Restrictions tightening and higher volatility of the stringency index are negatively associated with firms’ sales.
- Larger firms and those with higher access to finance performed better all else being equal.
- Access to finance does not seem to lessen the negative effect of the stringency of restrictions on sales.
- Firms’ which adapted by changing their business model or digitalizing dampened the effects of higher stringency
- Only a change in the business model can dampen the effects of higher volatility.
- There is evidence of a stronger negative effect of restrictions tightening for foreign-owned and exporting firms.
Research Fellows
Mohamed Ali Marouani
Associate Professor of Economics, Sorbonne University
Research Associates
Nesma Ali
Economist, Enterprise Analysis Unit, The World Bank...
Speakers
Lisa Chauvet
Professor of Economics, University of Paris 1...