Policy support and firm performance during the COVID-19 pandemic: Evidence from Colombia

Serie

• Documentos CEDE

Resumen

• The pandemic hit the Colombian economy as hard as other countries. Using the novel Business Pulse Survey, the paper test's the effect of government support and COVID-19 cases on firms' performance. A one standard deviation increase in government support at the average intensity of the pandemic increased the percentage of firms reporting normal operations by 4.8%. The Spring 2021 demonstrations, however, impacted negatively 13% each month it lasted. Firms' financial distress also counters the impact of government support, suggesting the need to complement firms' assistance with elements to ease their access to financial markets. Lastly, we show that investing in digital solutions was positively related to firms' performance but working from home had the opposite sign.

autores

• Galindo, Arturo José
• Tovar, Jorge Andrés

fecha de publicación

• 2022

Área temática

• D22 - Comportamiento de la empresa: análisis empíricos
• L20 - Objetivos, organización y comportamiento de la empresa: Generalidades
• L25 - Rendimiento de la empresa: tamaño, diversificación y alcance de la empresa
• O10 - Desarrollo económico, innovación, cambio tecnológico y crecimiento: Generalidades

Enfoque geográfico

• Colombia  Country
• South America  Continent

Líneas de investigación

• COVID-19
• Firms performance
• Policies
• Working from home

Issue

• 20330