Assessing and addressing the coronavirus-induced economic crisis: Evidence from 1.5 billion sales invoices

Zhuo Chen, Pengfei Li, Li Liao, Lu Liu and Zhengwei Wang

China Economic Review, 2024, vol. 85, issue C

Abstract: We probe the effects of the COVID-19 pandemic and the subsequent containment policies on business activities in China by exploiting 1.5 billion sales invoices. Using a difference-in-differences approach, we estimate that the average drop in sales is between 23% and 35%, depending on firm size, for the 12-week period after Wuhan's lockdown. Firms in industries requiring more intensive face-to-face interactions suffer more. Also, cities relying on investment-driven economic growth are more resilient. Lastly, governments' economic stimulus policies are more effective for medium-sized and large firms. Our findings shed new light on the policy debates on supporting business during the pandemic.

Keywords: COVID-19; Pandemic; Invoices; Firm sales; Economic stimulus (search for similar items in EconPapers)
JEL-codes: D22 G10 H12 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:85:y:2024:i:c:s1043951x24000336

DOI: 10.1016/j.chieco.2024.102144

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