Firms’ Digitalization during the COVID-19 Pandemic

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dc.creatorAvalos, Edgar
dc.creatorCirera, Xavier
dc.creatorCruz, Marcio
dc.creatorIacovone, Leonardo
dc.creatorMedvedev, Denis
dc.creatorNayyar, Gaurav
dc.creatorOrtega, Santiago Reyes
dc.date2023-02-15T20:02:45Z
dc.date2023-03-06T16:06:06Z
dc.date2023-02-15T20:02:45Z
dc.date2023-03-06T16:06:06Z
dc.date2023-01
dc.date.accessioned2026-07-01T00:35:16Z
dc.descriptionThe 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.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/099906201252336913/IDU003954df4097d60473d0b65906fce19f25ce6
dc.identifierhttps://hdl.handle.net/10986/39442
dc.identifier10.1596/1813-9450-10284
dc.identifier.urihttp://hdl.handle.net/123456789/406740
dc.languageEnglish
dc.languageen
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;10284
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
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 Pandemic
dc.titleA Tale of Two Stories
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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