Covid-19, policy responses, and industrial productivity around the globe
Iyke, BN, Sharma, Susan and Gunadi, I 2021, Covid-19, policy responses, and industrial productivity around the globe, Bulletin of Monetary Economics and Banking, vol. 24, no. 3, pp. 365-382, doi: 10.21098/bemp.v24i3.1691.
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Title
Covid-19, policy responses, and industrial productivity around the globe
Bank Indonesia, Bank Indonesia, Economics & Statistics Department
Place of publication
Jakarta, Indonesia
Publication date
2021
ISSN
1410-8046 2460-9196
Summary
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.
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Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.