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Has Digitalisation Alleviated the Impact of the COVID-19 on Manufacturing Sectors? Evidence from Sectoral-Level and Cross-Country Data

Tien-Ming Yip (), Wee Yeap Lau and Shankaran Nambiar ()
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Tien-Ming Yip: Universiti Malaya
Shankaran Nambiar: Malaysian Institute of Economic Research

A chapter in Digital Transformation in Industry, 2023, pp 419-436 from Springer

Abstract: Abstract This study is motivated by the repeated call from international organisations on the potential role of digitalisation in alleviating the adverse impact of the COVID-19 pandemic on the manufacturing sector's performance. Using a balanced panel data of 24 sub-sectors in Malaysia's manufacturing sector from January 2020 to December 2020, the empirical result shows that the COVID-19 pandemic significantly and adversely impacts manufacturing sales performance if digitalisation is low. However, the negative effect diminishes with a rising level of digitalisation. Further analysis using cross-country datasets from 79 countries documents similar results. This implies that the key finding of a mitigating effect of digitalisation is not confined to Malaysia but widespread across countries worldwide. Overall, the empirical results indicate that digitalisation is the key to the sustainable growth of the manufacturing sector during a health crisis.

Keywords: Digitalisation; COVID-19 pandemic; Manufacturing sector (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnichp:978-3-031-30351-7_31

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DOI: 10.1007/978-3-031-30351-7_31

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