EIB Working Paper 2023/05
The COVID-19 shock had a strong negative effect on aggregate economic performance, with the average firm taking a hit on sales revenues and financial performance. However, the effects varied from firm to firm. Were already-struggling firms hit hardest, threatening their very survival? Or did the COV...
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| Formato: | Open Access |
| Lenguaje: | inglés |
| Publicado: |
European Investment Bank
2024
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| Acceso en línea: | https://library.oapen.org/handle/20.500.12657/87753 https://directory.doabooks.org/handle/20.500.12854/134352 https://library.oapen.org/bitstream/20.500.12657/87753/1/SID-0000004487831_optimized.pdf |
| Sumario: | The COVID-19 shock had a strong negative effect on aggregate economic performance, with the average firm taking a hit on sales revenues and financial performance. However, the effects varied from firm to firm. Were already-struggling firms hit hardest, threatening their very survival? Or did the COVID-19 shock disproportionately deter tomorrow’s superstars at the upper end of the distribution, thus sacrificing future growth potential? This paper investigates where the COVID-19 shock hit the firm growth distribution, using graphical techniques and quantile regressions to analyse the full distribution of firm growth rates. We investigate how the COVID-19 shock relates to growth outcomes for four dependent variables: growth of sales, value added, employment, and labour productivity. Our results confirm that COVID-19 policy support reached its intended recipients. |
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