Language:
English
Pages:
1 Online-Ressource (31 pages)
Parallel Title:
Erscheint auch als Bruhn, Miriam Government Support and Firm Performance during COVID-19
Keywords:
Covid-19
;
Disease Control and Prevention
;
Employment
;
Government
;
Health, Nutrition and Population
;
Pandemic
;
Private Sector Development
;
Private Sector Economics
;
Social Protections and Labor
Abstract:
This paper assesses the medium-run effects of government support to firms during the COVID-19 crisis and whether the effectiveness of this support varied with its timing. Using data from three rounds of the World Bank's Enterprise Surveys COVID-19 Follow-up Surveys carried out between May 2020 and April 2022, it relates government support in Round 1 (received in the first half of 2020) and Round 2 (received during the second half of 2020 or early 2021) with firm performance in Round 3 (generally mid-2021). Controlling for a host of background characteristics, firms that received support in Round 1 performed better in terms of Round 3 sales, but only if they did not have continued support. Firms that also received support in Round 2 had similar Round 3 sales as those that received no support and were more likely to decrease employment. Firms that received government support only in Round 2 experienced no boost in Round 3 performance. The findings suggest that government support should be provided promptly, but it should also be phased out quickly
DOI:
10.1596/1813-9450-10641
URL:
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