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Monitoring COVID-19 Impacts on Firms in Ethiopia, Report No. 9: Firm Closure Amid the COVID-19 Pandemic - A Brief Look at the Evidence from HFPS-F

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2020-10-15
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2020-10-15
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For the current study, six rounds of the HFPS-F survey are used, mainly focusing on the business closure module from round six. The six rounds are roughly three weeks apart and were implemented between April 15 and September 8, 2020 in Addis Ababa. The sampling strategy is explained in detail in a companion technical note. Six survey briefs highlighting the impact of the pandemic on firms’ operations and labor dynamics are already produced along with two special topic briefs focusing on the gendered difference of the pandemic and how firms were affected by the State of Emergency. The current brief examines firm closure in relation to firms direct or indirect exposure to the social and economic impacts of the pandemic. The good news is that most of the firms that are closed have stopped production or services temporarily with less than 2 percent of firm closures reported to be permanent in R6 (roughly August). The following analysis thus focuses on temporary closures and mostly rely on data from 436 firms, of which 108 were temporarily closed and 328 were open at the time of the R6 survey.
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Abebe, Girum; Bundervoet, Tom; Wieser, Christina. 2020. Monitoring COVID-19 Impacts on Firms in Ethiopia, Report No. 9: Firm Closure Amid the COVID-19 Pandemic - A Brief Look at the Evidence from HFPS-F. © World Bank. http://hdl.handle.net/10986/34709 License: CC BY 3.0 IGO.
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    The COVID-19 (coronavirus) pandemic and its negative economic effects create an urgent need for timely data and evidence to help monitor and mitigate the social and economic impacts of the crisis and protect the welfare of the least well-off in Ethiopia's society. To monitor the impacts of the COVID-19 (coronavirus) pandemic on Ethiopia's economy and people and inform interventions and policy responses, the World Bank Ethiopia team, in collaboration with the government, designed and implemented two high-frequency phone surveys, one with firms and one with households.
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    As COVID-19 continues to disrupt the Ethiopian economy, a major concern is that the pre-existing gendered challenges facing women entrepreneurs, in access to capital and hired labor, for example, will worsen, further undermining the survival and performance of women-owned firms. However, very little data exist to monitor the gender differences in impacts brought about by the COVID-19 pandemic. Therefore, in April 2020, the World Bank launched a high-frequency phone survey (HFPS-F) of a random sample of firms in Addis Ababa to collect detailed information on firm operations, hiring and firing, and expectations of future operations and labor demand. The analysis that follows draws on the three rounds of the HFPS-F survey implemented between April 15 and June 18, 2020, consisting of a balanced panel of 454 firms from Addis Ababa.

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