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Firms’ Digitalization during the COVID-19 Pandemic: A Tale of Two Stories

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dc.contributor.authorAvalos, Edgar
dc.contributor.authorCirera, Xavier
dc.contributor.authorCruz, Marcio
dc.contributor.authorIacovone, Leonardo
dc.contributor.authorMedvedev, Denis
dc.contributor.authorNayyar, Gaurav
dc.contributor.authorOrtega, Santiago Reyes
dc.date.accessioned2023-02-15T20:02:45Z
dc.date.accessioned2023-03-06T16:06:06Z
dc.date.available2023-02-15T20:02:45Z
dc.date.available2023-03-06T16:06:06Z
dc.date.issued2023-01
dc.description.abstractThe COVID-19 pandemic accelerated the digital transformation of businesses. Using a unique global panel dataset, this paper documents the patterns of digital adoption during the pandemic across firms in 57 (mostly developing) countries. The data show the tale of two stories. On one hand, the pandemic drove firms to increase the use of digital platforms and invest in digital solutions. On the other hand, there is evidence that the digital divide increased. There remain substantial gaps between small and large firms as well as across sectors, particularly for new investments in digital solutions. Firms that did not use any digital platform or channel before the pandemic, also lagged in their response to the pandemic, increasing the gap with those that were more digitally ready. Moreover, although the share of online sales across firms for all size groups increased, there is a growing concentration of online sales among top firms. The paper discusses some of the factors associated with this increase in the digital divide and find that changes in digitalization remain even after mobility restrictions have eased. The analysis suggests that the pandemic has accelerated digitalization, but some firms disproportionately benefited from the digital transformation, potentially increasing the digital divide.en
dc.identifierhttp://documents.worldbank.org/curated/en/099906201252336913/IDU003954df4097d60473d0b65906fce19f25ce6
dc.identifier.doi10.1596/1813-9450-10284
dc.identifier.urihttps://hdl.handle.net/10986/39442
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;10284
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCORONAVIRUS
dc.subjectCOVID-19
dc.subjectFIRM-LEVEL INNOVATION
dc.subjectDIGITALIZATION
dc.subjectDIGITAL DIVIDE
dc.subjectINNOVATION AND TECHNOLOGY POLICY
dc.subjectDIGITAL ADOPTION IN DEVELOPING COUNTRIES
dc.subjectMOBIITY RESTRICTIONS AND DIGITALIZATION
dc.titleFirms’ Digitalization during the COVID-19 Pandemicen
dc.title.subtitleA Tale of Two Storiesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2023-01-25
okr.date.lastmodified2023-01-25T00:00:00Zen
okr.doctypeWorking Papers
okr.doctypeWorking Papers::Policy Research Working Papers
okr.docurlhttp://documents.worldbank.org/curated/en/099906201252336913/IDU003954df4097d60473d0b65906fce19f25ce6
okr.guid099906201252336913
okr.identifier.doi10.1596/1813-9450-10284
okr.identifier.externaldocumentumIDU-03954df4-97d6-473d-b659-6fce19f25ce6
okr.identifier.internaldocumentum33986888
okr.identifier.reportWPS10284
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099906201252336913/pdf/IDU003954df4097d60473d0b65906fce19f25ce6.pdfen
okr.topicInformation and Communication Technologies::Digital Divide
okr.topicPrivate Sector Development::Small and Medium Size Enterprises
okr.topicHealth, Nutrition and Population::SARS
okr.topicScience and Technology Development::Innovation
okr.topicInformation and Communication Technologies::ICT Policy and Strategies
relation.isAuthorOfPublicatione8c266d9-7c38-5ff5-90c2-8308a7cef21a
relation.isAuthorOfPublication.latestForDiscoverye8c266d9-7c38-5ff5-90c2-8308a7cef21a
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