Medium and long-term impact of SARS on total factor productivity（TFP): Empirical evidence from Chinese industrial enterprises

Hongjun Zhao and Na Chen

Journal of Asian Economics, 2022, vol. 82, issue C

Abstract: This study examines the impact of the 2003 SARS epidemic on the total factor productivity (TFP) of Chinese industrial enterprises using a difference-in-differences (DID) approach. The results exhibit that SARS significantly reduces TFP by 3.12–5.81%, lasting for three to five years. Further, this impact is heterogeneous across industries. A significantly negative impact is found in labor intensive industries, while capital and technology intensive industries is less affected. Contrarily, a significantly positive impact is observed in those industries necessary for life and production. Mechanism tests show that the impact on TFP is caused by a reduction in labour productivity and a decrease in innovation investment after SARS outbreak. This study highlights the importance of more targeted policy on Covid-19 and similar epidemics both in industrial, national and international level.

Keywords: SARS; Industrial enterprises; Total factor productivity; Medium and long-term impact (search for similar items in EconPapers)
JEL-codes: C82 E32 N15 N65 Q54 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:82:y:2022:i:c:s1049007822000641

DOI: 10.1016/j.asieco.2022.101507

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