Abstract
In this paper we employ survey information on more than 10,000 Southern and Eastern European firms and panel data methods to assess the effects of the COVID-19-related lockdown and government support policies on the business operations of enterprises. Our findings reveal considerable size- and sector-related effect heterogeneity, with small firms, exporting firms and firms operating in the facility sector experiencing the largest losses in terms of sales. A complete lockdown leads to an average decrease in sales by approximately 64%. We also document a disproportionate impact on female self-employed. Furthermore, state aid in the form of deferral of payments or wage subsidies were the most effective government support instruments. For instance, wage subsidies saved up to 2.7 employees per firm in the surveyed enterprises.
Highlights
The year 2020 will be portrayed in history books as the year the COVID-19 pandemic disrupted economies worldwide and individuals suddenly faced a drastic change of their lives
In this paper we contribute to the nascent literature that addresses the effects of COVID19 related lockdown as well as government support policies on firms
Since our findings reveal that small firms and firms belonging to the facility sector were most severely hit, it is not surprising that female self-employed were disproportionately affected
Summary
The year 2020 will be portrayed in history books as the year the COVID-19 pandemic disrupted economies worldwide and individuals suddenly faced a drastic change of their lives. In this paper we contribute to the nascent literature that addresses the effects of COVID19 related lockdown as well as government support policies on firms. Quantifying the magnitude and heterogeneity of the containment measures along different dimensions is paramount to gain an accurate picture of the most hardly hit firms and sectors This in turn assists policymakers in designing the appropriate response policies and targeting those most in need. While in the regular WBES, business owners and top managers of firms of different sizes, active in different economic sectors, are asked about the characteristics, climate, and constraints of their business operations in the respective countries, the follow-up questionnaire aims at collecting timely information on sales, liquidity, operations of the business, labor adjustments or expectations about the future during the COVID-19 crisis.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
