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Can digitization mitigate the economic damage of a pandemic? Evidence from SARS

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  • Katz, Raúl
  • Jung, Juan
  • Callorda, Fernando

Abstract

The work presented in this paper uses empirical evidence to highlight the important role digital technology plays in mitigating a pandemic's economic disruption. As extensive datasets including the effect of the current COVID-19 pandemic are still unavailable, this study provides an assessment of the role of digitization at the time of SARS in 2003. Results are robust in pointing out that those countries with better broadband connectivity were able to mitigate some of the economic losses incurred by the pandemic. While anecdotal evidence is plentiful even for COVID-19, this study provides rigorous analysis to support that a reliable telecommunications infrastructure and a high level of digitization is crucial to keep the economy running under pandemic conditions. These results provide valuable evidence for the current context of COVID-19, which has resulted in several national lockdowns around the world. In consequence, we believe that the public and private sectors must collaborate and work together to promote the enhancement of the digital ecosystem. In the long run, a suitable regulatory framework seems crucial to stimulate private investments to close the digital supply gap, as well as promoting the digitization of business process and the training of the workforce to acquire digital skills. In the short term, we discuss several measures that can be taken to accommodate the expected increases in internet traffic in such circumstances and maintain the quality of service.

Suggested Citation

  • Katz, Raúl & Jung, Juan & Callorda, Fernando, 2020. "Can digitization mitigate the economic damage of a pandemic? Evidence from SARS," Telecommunications Policy, Elsevier, vol. 44(10).
  • Handle: RePEc:eee:telpol:v:44:y:2020:i:10:s0308596120301361
    DOI: 10.1016/j.telpol.2020.102044
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    References listed on IDEAS

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    Cited by:

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    2. Papaioannou, Sotiris K., 2023. "ICT and economic resilience: Evidence from the COVID-19 pandemic," Economic Modelling, Elsevier, vol. 128(C).
    3. Marta Borda & Natalia Grishchenko & Patrycja Kowalczyk-Rólczyńska, 2022. "Impact of Digital Inequality on the COVID-19 Pandemic: Evidence from European Union Countries," Sustainability, MDPI, vol. 14(5), pages 1-13, March.
    4. Zhang, Qianxiao & Shah, Syed Ale Raza & Yang, Ling, 2022. "An Appreciated Response of Disaggregated Energies Consumption towards the Sustainable Growth: A debate on G-10 Economies," Energy, Elsevier, vol. 254(PA).
    5. Abidi, Nordine & El Herradi, Mehdi & Sakha, Sahra, 2023. "Digitalization and resilience during the COVID-19 pandemic," Telecommunications Policy, Elsevier, vol. 47(4).
    6. Jungsuk Kim & Gemma Estrada & Yothin Jinjarak & Donghyun Park & Shu Tian, 2022. "ICT and Economic Resilience during COVID-19: Cross-Country Analysis," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    7. Xie, Chengyuan & Jin, Xiaotong, 2023. "The role of digitalization, sustainable environment, natural resources and political globalization towards economic well-being in China, Japan and South Korea," Resources Policy, Elsevier, vol. 83(C).
    8. Raúl Katz & Juan Jung, 2022. "The Role of Broadband Infrastructure in Building Economic Resiliency in the United States during the COVID-19 Pandemic," Mathematics, MDPI, vol. 10(16), pages 1-14, August.
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    12. Cristi Spulbar & Lucian Claudiu Anghel & Ramona Birau & Simona Ioana Ermiș & Laurențiu-Mihai Treapăt & Adrian T. Mitroi, 2022. "Digitalization as a Factor in Reducing Poverty and Its Implications in the Context of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(17), pages 1-26, August.
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    15. Barrutia, Jose M. & Echebarria, Carmen, 2021. "Effect of the COVID-19 pandemic on public managers’ attitudes toward digital transformation," Technology in Society, Elsevier, vol. 67(C).

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    More about this item

    Keywords

    Telecommunications; Digital ecosystem; Pandemics;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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