Cover IMF Working Papers
Buy Book in Print
Digitalization and Resilience
Author:
Alexander Copestake
Search for other papers by Alexander Copestake in
Current site
Google Scholar Close
,
Julia Estefania-Flores
Search for other papers by Julia Estefania-Flores in
Current site
Google Scholar Close
, and
Davide Furceri https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Davide Furceri in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2022: Issue 210
Language:
English
Publication Date:
28 Oct 2022
DOI:
https://doi.org/10.5089/9798400225697.001
ISBN:
9798400225697
ISSN:
1018-5941
Pages:
48
Keywords:
Resilience; Digitalization; Recessions; Firms; Local Projection; digitalization measure; macroeconomic data; balance sheet data; outbreak of the COVID-19 pandemic; revenue loss; employment share; Economic recession; COVID-19; Global
Download PDF (1.7 MB) Download Epub
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.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund