Digitalization and Resilience

By Alexander Copestake, Julia Estefania-Flores, Davide Furceri

October 28, 2022

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Format: Chicago

Alexander Copestake, Julia Estefania-Flores, and Davide Furceri. Digitalization and Resilience, (USA: International Monetary Fund, 2022) accessed November 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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:

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Issue:

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Series:

Working Paper No. 2022/210
Stock No:

WPIEA2022210
ISBN:

9798400225697
ISSN:

1018-5941

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