Firms’ Digitalization during the COVID-19 Pandemic
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World Bank, Washington, DC
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The 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.
Palabras clave
CORONAVIRUS, COVID-19, FIRM-LEVEL INNOVATION, DIGITALIZATION, DIGITAL DIVIDE, INNOVATION AND TECHNOLOGY POLICY, DIGITAL ADOPTION IN DEVELOPING COUNTRIES, MOBIITY RESTRICTIONS AND DIGITALIZATION