Technological capacity and firms' recovery from Covid-19
Magdalena Erdem (),
Leonardo Gambacorta () and
No 965, BIS Working Papers from Bank for International Settlements
Can higher technological capacity help firms to recover quicker from recessions? Analyzing the effects of the Covid-19 pandemic on firm revenues in several countries, we find that firms headquartered in jurisdictions with better digital infrastructure generated relatively higher revenue during the shock period. Improving a country's technological capability by one standard deviation is associated with a relative increase in revenues of the average firm by around 4%. The positive effect of technology is more pronounced among smaller firms, suggesting that it could have helped the recovery of SMEs.
Keywords: Covid-19; pandemic; information technology; crisis; recovery. (search for similar items in EconPapers)
JEL-codes: E23 G10 G38 O30 (search for similar items in EconPapers)
Pages: 23 pages
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-mac, nep-sbm and nep-tid
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Journal Article: Technological capacity and firms’ recovery from Covid-19 (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:965
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