Using Business Pulse Surveys (BPS) 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. Our 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 services sector, which largely comprises firms among non-knowledge intensive services in our sample. Fourth, the effects of the amenability to work remotely in countries with better digital infrastructure do not dissipate over time.
| Repository name | URI |
|---|---|
| Reproducible Research Repository (World Bank) | https://reproducibility.worldbank.org |
Paper exhibits were reproduced in a computer with the following specifications:
– OS: Windows 11 Enterprise
– Processor: Intel(R) Core(TM) i5-1145G7 CPU @ 2.60GHz
– Memory available: 15.7 GB
– Software version: Stata version 18.0 MP
~3 minutes run time
Some data is restricted and has not been included in the reproducibility package. For more details, please refer to the README file.
| Author | Affiliation | |
|---|---|---|
| Cristina Constantinescu | World Bank | ineagu@worldbank.org |
| Arti Grover | International Finance Corporation | agrover1@ifc.org |
| Gaurav Nayyar | World Bank | gnayyar@worldbank.org |
The authors are immensely grateful to the many World Bank Group colleagues and counterpart institutions that have supported the Business Pulse Survey (BPS) data collection, without whom this work would not have been possible. Likewise, we thank the Enterprise Analysis Unit of the Development Economics Global Indicators Department of the World Bank Group for making the Enterprise Survey data available. We thank Gene Grossman, Mona Haddad, Denis Medvedev, Antonio Nucifora, Marcelo Olarreaga and Daria Taglioni for their guidance and strategic support of the BPS initiative, and the Umbrella Trade Trust Fund for financial support. We thank Yewon Choi, Shwetha Eapen, and Mauricio Latorre for their research assistance. The authors are also grateful to the following colleagues for their feedback at the concept stage of this project: Asya Akhlaque, Ana Fernandes, Caroline Freund, Mary Hallward-Driemeier, Leonardo Iacovone, Michele Ruta, Daria Taglioni, Gonzalo Varela and Erik von Uexkull. We thank Edgar Avalos and Jesica Torres for their contributions in the initial stages of the project and Arthur Johannes Giesberts for his generosity in sharing his tool for converting text variables into 4-digit industry codes. We thank Alvaro Espitia and co-authors of Espitia et al. (2021) for kindly sharing the remote work flexibility indicator and the output share of durable products by industry. The views expressed in this paper are solely those of the authors and do not necessarily reflect those of the World Bank, its Executive Directors, or the countries they represent.
2024-10
| Location | Code |
|---|---|
| World | WLD |
The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.
| Name | URI |
|---|---|
| Modified BSD3 | https://opensource.org/license/bsd-3-clause/ |
| Name | Affiliation | |
|---|---|---|
| Cristina Constantinescu | World Bank | ineagu@worldbank.org |
| Reproducibility WBG | World Bank | reproducibility@worldbank.org |
| Name | Abbreviation | Affiliation | Role |
|---|---|---|---|
| Reproducibility WBG | DIME | World Bank - Development Impact Department | Verification and preparation of metadata |
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