Research Insights: Can Better Infrastructure Offset the Negative Impacts That COVID-19 Has Had on Productivity in Different Economic Sectors?
The effects of COVID-19 have been stronger in service-related subsectors, where supply and/or demand were constrained by lockdowns and social distancing measures. The losses in these subsectors have had direct impacts-through their weight in countries GDP-and indirect impacts through their effect on other sectors. In Latin America, effects on the three most affected sectors-wholesale, retail, and hospitality services; construction; and manufacturing-add up to a 4.9 percent hit to economy-wide labor productivity through direct and indirect channels. Large productivity improvements in infrastructure may be needed to fully compensate for the negative productivity losses traceable to COVID-19.
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| Language: | English |
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Inter-American Development Bank
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| Subjects: | Coronavirus, Pandemic, Productivity Growth, Productivity Shock, Labor Productivity, Manufacturing Industry, Infrastructure Development, Infrastructure Work, Construction Industry, O47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence, C51 - Model Construction and Estimation, |
| Online Access: | http://dx.doi.org/10.18235/0003682 https://publications.iadb.org/en/research-insights-can-better-infrastructure-offset-negative-impacts-covid-19-has-had-productivity |
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| Summary: | The effects of COVID-19 have been stronger in service-related subsectors, where supply and/or demand were constrained by lockdowns and social distancing measures. The losses in these subsectors have had direct impacts-through their weight in countries GDP-and indirect impacts through their effect on other sectors. In Latin America, effects on the three most affected sectors-wholesale, retail, and hospitality services; construction; and manufacturing-add up to a 4.9 percent hit to economy-wide labor productivity through direct and indirect channels. Large productivity improvements in infrastructure may be needed to fully compensate for the negative productivity losses traceable to COVID-19. |
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