Digitalization and Resilience
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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.
Series:
Working Paper No. 2022/210
Subject:
COVID-19 Digitalization Economic growth Economic recession Health Technology
Frequency:
regular
English
Publication Date:
October 28, 2022
ISBN/ISSN:
9798400225697/1018-5941
Stock No:
WPIEA2022210
Pages:
48
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