IMF Working Papers

Digitalization and Resilience

By Alexander Copestake, Julia Estefania-Flores, Davide Furceri

October 28, 2022

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Alexander Copestake, Julia Estefania-Flores, and Davide Furceri. Digitalization and Resilience, (USA: International Monetary Fund, 2022) accessed November 14, 2024

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Summary

This paper investigates the role of digitialization in improving economic resilience. Using balance sheet data from 24,000 firms in 75 countries, and a difference-in-differences approach, we find that firms in industries that are more digitalized experience lower revenue losses following recessions. Early data since the outbreak of the COVID-19 pandemic suggest an even larger effect during the resulting recessions. These results are robust across a wide range of digitalization measures—such as ICT input and employment shares, robot usage, online sales, intangible assets and digital skills listed on online profiles—and several alternative specifications.

Subject: COVID-19, Digitalization, Economic growth, Economic recession, Health, Technology

Keywords: Balance sheet data, COVID-19, Digitalization, Digitalization measure, Economic recession, Employment share, Firms, Global, Local Projection, Macroeconomic data, Outbreak of the COVID-19 pandemic, Recessions, Resilience, Revenue loss

Publication Details

  • Pages:

    48

  • Volume:

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  • DOI:

    ---

  • Issue:

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  • Series:

    Working Paper No. 2022/210

  • Stock No:

    WPIEA2022210

  • ISBN:

    9798400225697

  • ISSN:

    1018-5941