Productivity of Firms Using Relief Policies During the COVID-19 Crisis

Masayuki Morikawa

No DP20-006, SSPJ Discussion Paper Series from Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University

Abstract: Based on an original survey of Japanese firms, this study presents an overview of the characteristics of firms that used policy measures to mitigate the negative impacts of the COVID-19 pandemic, with an emphasis on the assessment of pre-pandemic productivity. According to the results, many firms are taking advantage of financial support programs, employment assistance subsidies, and subsidies to sustain businesses. The productivity of firms using these support measures was found to be lower than that of non-user firms prior to the pandemic, suggesting that low-productivity firms have been affected seriously by the crisis. The policy implication is that relief policies under the recent COVID-19 crisis should be temporary and such policies should be modified to enable the smooth reallocation of resources.

Keywords: COVID-19; firm support policies; productivity; cleansing effect; reallocation effect (search for similar items in EconPapers)
JEL-codes: D24 H25 L25 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2021-02
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/71539/DP20-006.pdf

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Journal Article: Productivity of firms using relief policies during the COVID-19 crisis (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:sspjdp:dp20-006

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