Policy support and firm performance during the COVID-19 pandemic: Evidence from Colombia

Arturo Galindo and Jorge Tovar

No 20330, Documentos CEDE from Universidad de los Andes, Facultad de Economía, CEDE

Abstract: The pandemic hit the Colombian economy as hard as other countries. Using the novel Business Pulse Survey, the paper test's the effect of government support and COVID-19 cases on firms' performance. A one standard deviation increase in government support at the average intensity of the pandemic increased the percentage of firms reporting normal operations by 4.8%. The Spring 2021 demonstrations, however, impacted negatively 13% each month it lasted. Firms' financial distress also counters the impact of government support, suggesting the need to complement firms' assistance with elements to ease their access to financial markets. Lastly, we show that investing in digital solutions was positively related to firms' performance but working from home had the opposite sign.

Keywords: COVID-19; Firms performance; Policies; Working from home (search for similar items in EconPapers)
JEL-codes: D22 L20 L25 O10 (search for similar items in EconPapers)
Pages: 32
Date: 2022-07-26
New Economics Papers: this item is included in nep-sbm
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https://repositorio.uniandes.edu.co/bitstream/handle/1992/59268/dcede2022-27.pdf

Related works:
Working Paper: Policy Support and Firm Performance During the COVID-19 Pandemic: Evidence from Colombia (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000089:020330

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