Digitalization and Resilience

Digitalization and Resilience
READ MORE...
Volume/Issue: Volume 2022 Issue 210
Publication date: October 2022
ISBN: 9798400225697
$20.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
paperback else
pdf else
epub else
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Economics- Macroeconomics , Economics / General , Resilience , Digitalization , Recessions , Firms , Local Projection , digitalization measure , macroeconomic data , balance sheet data , outbreak of the COVID-19 pandemic , revenue loss , employment share , Economic recession , COVID-19 , Global

Summary

This paper investigates the role of digitialization 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.