Technological capacity and firms’ recovery from Covid-19

C-Tier
Journal: Economics Letters
Year: 2021
Volume: 209
Issue: C

Score contribution per author:

0.201 = (α=2.01 / 5 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Can higher technological capacity help firms to recover quicker from recessions? Analysing 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.

Technical Details

RePEc Handle
repec:eee:ecolet:v:209:y:2021:i:c:s0165176521003797
Journal Field
General
Author Count
5
Added to Database
2026-01-25