Template-Type: ReDIF-Paper 1.0
Author-Name: Sebastian Doerr
Author-X-Name-First: Sebastian
Author-X-Name-Last: Doerr
Author-Name: Magdalena Erdem
Author-X-Name-First: Magdalena
Author-X-Name-Last: Erdem
Author-Name: Guido Franco
Author-X-Name-First: Guido
Author-X-Name-Last: Franco
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: Anamaria Illes
Author-X-Name-First: Anamaria
Author-X-Name-Last: Illes
Title: Technological capacity and firms' recovery from Covid-19
Abstract: 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.
Length: 23 pages
Creation-Date: 2021-10
File-URL: https://www.bis.org/publ/work965.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work965.htm
File-Format: text/html
Number: 965
Keywords: Covid-19, pandemic, information technology, crisis, recovery.
Classification-JEL: E23, G10, G38, O30
Handle: RePEc:bis:biswps:965