COVID-19 and SME Failures /

We estimate the impact of the COVID-19 crisis on business failures among small and medium size enterprises (SMEs) in seventeen countries using a large representative firm-level database. We use a simple model of firm cost-minimization and measure each firm's liquidity shortfall during and after...

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Λεπτομέρειες βιβλιογραφικής εγγραφής
Κύριος συγγραφέας: Kalemli-Ozcan, Sebnem
Άλλοι συγγραφείς: Gourinchas, Pierre-Olivier, Penciakova, Veronika, Sander, Nick
Μορφή: Επιστημονικό περιοδικό
Γλώσσα:English
Έκδοση: Washington, D.C. : International Monetary Fund, 2020.
Σειρά:IMF Working Papers; Working Paper ; No. 2020/207
Διαθέσιμο Online:Full text available on IMF
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100 1 |a Kalemli-Ozcan, Sebnem. 
245 1 0 |a COVID-19 and SME Failures /  |c Sebnem Kalemli-Ozcan, Pierre-Olivier Gourinchas, Veronika Penciakova, Nick Sander. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2020. 
300 |a 1 online resource (55 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We estimate the impact of the COVID-19 crisis on business failures among small and medium size enterprises (SMEs) in seventeen countries using a large representative firm-level database. We use a simple model of firm cost-minimization and measure each firm's liquidity shortfall during and after COVID-19. Our framework allows for a rich combination of sectoral and aggregate supply, productivity, and demand shocks. We estimate a large increase in the failure rate of SMEs under COVID-19 of nearly 9 percentage points, ab-sent government support. Accommodation and Food Services, Arts, Entertainment and Recreation, Education, and Other Services are among the most affected sectors. The jobs at risk due to COVID-19 related SME business failures represent 3.1 percent of private sector employment. Despite the large impact on business failures and employment, we estimate only moderate effects on the financial sector: the share of Non Performing Loans on bank balance sheets would increase by up to 11 percentage points, representing 0.3 percent of banks' assets and resulting in a 0.75 percentage point decline in the common equity Tier-1 capital ratio. We evaluate the cost and effectiveness of various policy interventions. The fiscal cost of an intervention that narrowly targets at risk firms can be modest (0.54% of GDP). However, at a similar level of effectiveness, non-targeted subsidies can be substantially more expensive (1.82% of GDP). Our results have important implications for the severity of the COVID-19 recession, the design of policies, and the speed of the recovery. 
538 |a Mode of access: Internet 
700 1 |a Gourinchas, Pierre-Olivier. 
700 1 |a Penciakova, Veronika. 
700 1 |a Sander, Nick. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2020/207 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2020/207/001.2020.issue-207-en.xml  |z IMF e-Library