Abstract
ABSTRACT This paper investigates how the COVID-19 pandemic and resulting government support affected the financial performance of Polish firms at the aggregate, regional, and sectoral levels. The results of our dynamic econometric model showed that firm performance at the aggregate level declined in 2020Q1 but recovered in 2021Q1. The pandemic negatively affected western firms but not eastern ones. Manufacturing and transport & logistics firms suffered temporarily in early 2020 but recovered in 2021Q1. Construction and trade & repair firms remained resilient. Overall, the pandemic and government support affected the sectors and regions differently, with varied policy implications.
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