Global value chains and firm survivability during the COVID-19 pandemic: digitalization as the moderator?

Sasidaran Gopalan, Sébastien Miroudot, Ketan Reddy
DOI number
#Trade and FDI

Additional info: Published in Applied Economic Letters

Firms participating in global value chains (GVCs) were not only exposed to significant shocks during the COVID-19 pandemic but also turned out to be more resilient. Leveraging a large cross-country firm-level dataset from the World Bank Enterprise Surveys (WBES) and COVID-19 Follow-Up Enterprise Surveys (CFES), we show that the interaction between digitalization and GVC participation is positively associated with the survival of firms during the pandemic. This empirical result is significant because advancements in digitalization and rapid strides in terms of digital adoption have been recognized as key factors behind the rise of GVCs.

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