Using Business Pulse Survey data for 61 countries during the COVID-19 pandemic, this paper presents novel findings on remote work, enabled by digitalization, as a source of resilience for firms. The results suggest the following. First, firms in sectors with greater amenability to remote work experienced a smaller adverse impact of the pandemic in countries with better digital infrastructure. Second, these effects apply to both exporting and non-exporting firms. Third, there are differences across sectors. Among firms in the manufacturing sector, the benefits of remote work in countries with better digital infrastructure accrue more to exporters relative to non-exporters, thereby reflecting a premium to exporting. This exporting premium is not observed in the service sector, which largely comprises firms in non-knowledge intensive services in the sample. Fourth, the effects of the amenability to work remotely in countries with better digital infrastructure do not dissipate over time.
Authors
- Associated content
- Link to data and reproducibility package
- Citation
- “ Constantinescu , Cristina ; Grover, Arti ; Nayyar, Gaurav . 2024 . Digitalization, Remote Work and Firm Resilience: Evidence from the COVID-19 Shock . Policy Research Working Paper; 10949 . © Washington, DC: World Bank . http://hdl.handle.net/10986/42255 License: CC BY 3.0 IGO . ”
- Collection(s)
- Policy Research Working Papers
- DOI
- http://dx.doi.org/10.1596/1813-9450-10949
- Identifier externaldocumentum
- 34404949
- Identifier internaldocumentum
- 34404949
- Pages
- 27
- Published in
- United States of America
- RelationisPartofseries
- Policy Research Working Paper; 10949
- Report
- WPS10949
- Rights
- CC BY 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by/3.0/igo/
- UNIT
- Prosperity-FCI-TIC-Inv Climate (ETIIC)
- URI
- https://hdl.handle.net/10986/42255
- date disclosure
- 2024-10-16
- region geographical
- World
- theme
- Inclusive Growth,Human Development and Gender,Data Development and Capacity Building,Economic Policy,Trade Policy,Economic Growth and Planning,Disease Control,Enterprise Development,Private Sector Development,Pandemic Response,Public Sector Management,Trade,Data production, accessibility and use,Global value chains
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Table of Contents
- Introduction 4
- Data and Descriptive Statistics 6
- Empirical Strategy 8
- Results 10
- Baseline specification 10
- Robustness checks 11
- Measuring remote work and internet penetration 11
- Endogeneity 12
- Heterogeneous effects 15
- Conclusion 18
- Appendices 24
- BPS Data (Sample, Summary Statistics); Sectoral and Country Attributes 24