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Effectiveness of Government Support for the Private Sector during the COVID-19 Crisis: Evidence from El Salvador and Georgia

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dc.contributor.authorKaralashvili, Nona
dc.contributor.authorTamkoc, M. Nazim
dc.date.accessioned2022-04-12T15:40:53Z
dc.date.available2022-04-12T15:40:53Z
dc.date.issued2022-03
dc.description.abstractThis paper estimates the effectiveness of government support to the private sector during the COVID-19 pandemic in El Salvador and Georgia using firm-level data collected before and during the pandemic. The two countries are selected because eligibility criteria for support involved pre-pandemic features of firms, as opposed to more prevalent criteria directly linked to firms’ experiences during the pandemic and that greatly exacerbate concerns about selection bias in estimation. Four outcome variables are studied relating to firms’ workforce, hours of operations, and expectations. Matching and panel estimation techniques are used on full and restricted samples, with the latter aimed at reducing selection bias. Government support appears to have helped firms avoid a reduction in operations in El Salvador, mainly through cash transfers, which also helped in terms of permanent workers, with the latter effect counteracted by wage subsidies. Smaller firms in Georgia appear to have benefited more from government support, mostly through fiscal relief, which was partially counteracted by wage subsidies that benefited larger firms more. The finding that smaller firms have benefited more helps raise confidence in the analysis as strong negative selection bias is expected in this context. Manufacturers of textiles and garments in El Salvador and hotels and restaurants in Georgia appear to have benefited from government support, but the patterns in other sectors are mixed and country-specific, highlighting potential complexities of attempting to target sectors.en
dc.identifierhttp://documents.worldbank.org/curated/en/772451647971587082/Effectiveness-of-Government-Support-for-the-Private-Sector-during-the-COVID-19-Crisis-Evidence-from-El-Salvador-and-Georgia
dc.identifier.doi10.1596/1813-9450-9980
dc.identifier.urihttps://hdl.handle.net/10986/37289
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;9975
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCOVID SUPPORT EFFECTIVENESS
dc.subjectPANDEMIC
dc.subjectCOVID-19
dc.subjectCOVID RELIEF ELIGIBILITY
dc.subjectGOVERNMENT SUPPORT TO FIRMS
dc.subjectPRIVATE SECTOR COVID RELIEF EFFECTIVENESS
dc.subjectWAGE SUBSIDIES
dc.subjectCASH TRANSFERS
dc.subjectEXPORT
dc.subjectVULNERABILITY
dc.subjectRESILIENCE
dc.subjectHIGH-FREQUENCY DATA
dc.subjectSHOCK
dc.subjectCORONAVIRUS
dc.titleEffectiveness of Government Support for the Private Sector during the COVID-19 Crisisen
dc.title.subtitleEvidence from El Salvador and Georgiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleEffectiveness of Government Support for the Private Sector during the COVID-19 Crisis: Evidence from El Salvador and Georgia
okr.date.disclosure2022-03-22
okr.date.doiregistration2025-04-10T11:14:32.311862Z
okr.date.lastmodified2022-03-22T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/772451647971587082/Effectiveness-of-Government-Support-for-the-Private-Sector-during-the-COVID-19-Crisis-Evidence-from-El-Salvador-and-Georgia
okr.guid772451647971587082
okr.identifier.doi10.1596/1813-9450-9980
okr.identifier.externaldocumentum090224b088d3d074_1_0
okr.identifier.internaldocumentum33763927
okr.identifier.reportWPS9980
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/772451647971587082/pdf/Effectiveness-of-Government-Support-for-the-Private-Sector-during-the-COVID-19-Crisis-Evidence-from-El-Salvador-and-Georgia.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.administrativeLatin America & Caribbean
okr.topicPoverty Reduction::Rural Poverty Reduction
okr.topicSocial Protections and Labor::Wages, Compensation & Benefits
okr.topicMacroeconomics and Economic Growth::Business Cycles and Stabilization Policies
okr.topicMacroeconomics and Economic Growth::Economic Assistance
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.unitEnterprise Analysis-WB (DECEA)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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