Drivers of firms' digital activities in response to the Covid-19 pandemic

Chiara Franco () and Filomena Pietrovito ()

Economics & Statistics Discussion Papers from University of Molise, Department of Economics

Abstract: The aim of the paper is to analyse the main internal drivers of the increase and adoption of online activities carried out by firms in reaction to the Covid-19 pandemic. While the impact of Covid-19 pandemic on several different measures of firm level performance has been debated in many papers, not enough effort has been devoted to investigating its digitalization impact, especially with respect to the drivers for firms operating in transition countries. To this end, we explore a very detailed firm-level dataset, drawn from the World Bank Enterprise Survey (WBES) combined with the Covid-19-ES Follow-up Survey, for 22 East European and Central-Eastern Asian countries. Our findings reveal that (i) higher online activity is associated with higher digital and technological endowment of the firm and (ii) this relationship is shaped by external factors, such as country-level digital infrastructure.

Keywords: digitalization; technological endowment, transition countries, Covid-19. (search for similar items in EconPapers)
JEL-codes: D22 L20 O30 (search for similar items in EconPapers)
Pages: 37
Date: 2024-05-16
New Economics Papers: this item is included in nep-sbm and nep-tid
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