Digitalization and Resilience

48 Pages Posted: 15 Nov 2022

See all articles by Alexander Copestake

Alexander Copestake

International Monetary Fund

Julia Estefania Flores

International Monetary Fund (IMF)

Davide Furceri

International Monetary Fund (IMF)

Abstract

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.

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

JEL Classification: E22, E32, O33, I12, O30

Suggested Citation

Copestake, Alexander and Estefania Flores, Julia and Furceri, Davide, Digitalization and Resilience. IMF Working Paper No. 2022/210, Available at SSRN: https://ssrn.com/abstract=4272246 or http://dx.doi.org/10.5089/9798400223846.001

Alexander Copestake (Contact Author)

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States
2028765387 (Phone)

HOME PAGE: http://copestake.info

Julia Estefania Flores

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Davide Furceri

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
34
Abstract Views
100
PlumX Metrics