sharma-covid19policy-2021.pdf (512.29 kB)
Download file

Covid-19, policy responses, and industrial productivity around the globe

Download (512.29 kB)
journal contribution
posted on 30.09.2021, 00:00 authored by B N Iyke, Susan SharmaSusan Sharma, I Gunadi
We examine whether the COVID-19-induced policy responses by countries moderated the negative impact of the pandemic on industrial productivity. Using a panel of the 50 most affected countries by the pandemic, we show that the policy responses do not only help reduce the spread of COVID-19, but they also moderate its negative impact on industrial productivity and help steer countries back to their growth paths. We demonstrate that, in the absence of the pandemic, some of the policy responses (i.e., lockdowns, travel restrictions, etc.) would have reduced productivity. We further demonstrate that our estimates are robust when considering alternative specifications of our productivity model. Our study provides strong support for evidence-based policies and emphasizes, consistent with theoretical arguments, that an optimal policy mix is fundamental to steering economies back to their steady productivity growth paths when facing negative shocks.

History

Journal

Buletin Ekonomi Moneter dan Perbankan

Volume

24

Issue

3

Pagination

365 - 382

ISSN

1410-8046

eISSN

2460-9196

Publication classification

C1 Refereed article in a scholarly journal

Usage metrics

Categories

Keywords

Exports