IDEAS home Printed from https://ideas.repec.org/p/euf/ecobri/069.html
   My bibliography  Save this paper

The Sectoral Impact of the COVID-19 Crisis. An Unprecedented and Atypical Crisis

Author

Listed:
  • Erik Canton
  • Federica Colasanti
  • Jorge Durán
  • Maria Garrone
  • Alexandr Hobza
  • Wouter Simons
  • Anneleen Vandeplas

Abstract

The COVID-19 pandemic has triggered the largest and most abrupt contraction in economic activity in recent European history. This brief discusses the sectoral impact of the pandemic. Partly as a result of the nature of the containment measures, contact-intensive services have suffered disproportionally. Abrupt demand shifts and disruptions in global value chains have also affected sectors differently. The prospects for a quick and strong recovery are good but differ across sectors, calling in some cases for a reallocation of resources within and possibly across sectors. The pandemic will also accelerate existing trends such as digitalisation, the green transition, and changes in global value chains. Appropriate policy responses are needed to ensure these transitions are sustainable and inclusive.

Suggested Citation

  • Erik Canton & Federica Colasanti & Jorge Durán & Maria Garrone & Alexandr Hobza & Wouter Simons & Anneleen Vandeplas, 2021. "The Sectoral Impact of the COVID-19 Crisis. An Unprecedented and Atypical Crisis," European Economy - Economic Briefs 069, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecobri:069
    as

    Download full text from publisher

    File URL: https://economy-finance.ec.europa.eu/publications/sectoral-impact-covid-19-crisis-unprecedented-and-atypical-crisis_en
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Barrero, Jose Maria & Bloom, Nick & Davis, Steven J., 2020. "Why Working From Home Will Stick," SocArXiv wfdbe, Center for Open Science.
    2. Falk, Martin & Hagsten, Eva, 2015. "E-commerce trends and impacts across Europe," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 357-369.
    3. Peter Gal & Giuseppe Nicoletti & Theodore Renault & Stéphane Sorbe & Christina Timiliotis, 2019. "Digitalisation and productivity: In search of the holy grail – Firm-level empirical evidence from EU countries," OECD Economics Department Working Papers 1533, OECD Publishing.
    4. Marin Falk & Eva Hagsten, 2015. "E-commerce trends and impacts across Europe," UNCTAD Discussion Papers 220, United Nations Conference on Trade and Development.
    5. Martin Gornig & Alexander Schiersch, 2019. "Agglomeration Economies and the Firm TFP: Different Effects across Industries," Discussion Papers of DIW Berlin 1788, DIW Berlin, German Institute for Economic Research.
    6. Battistini, Niccolò & Stoevsky, Grigor, 2021. "The impact of containment measures across sectors and countries during the COVID-19 pandemic," Economic Bulletin Boxes, European Central Bank, vol. 2.
    7. Beata Javorcik, 2020. "Reshaping of global supply chains will take place, but it will not happen fast," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 18(4), pages 321-325, October.
    8. Peter Gal & Giuseppe Nicoletti & Christina von Rüden & Stéphane Sorbe & Théodore Renault, 2019. "Digitalization and Productivity: In Search of the Holy Grail - Firm-level Empirical Evidence from European Countries," International Productivity Monitor, Centre for the Study of Living Standards, vol. 37, pages 39-71, Fall.
    9. Henrik Brynthe Lund & Markus Steen, 2019. "Make at home or abroad? Manufacturing reshoring through a GPN lens," PEGIS geo-disc-2019_09, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    10. Zsolt Darvas, 2020. "Resisting deglobalisation- the case of Europe," Bruegel Working Papers 34524, Bruegel.
    11. Daniel Moran & Richard Wood & Edgar Hertwich & Kim Mattson & Joao F. D. Rodriguez & Karin Schanes & John Barrett, 2020. "Quantifying the potential for consumer-oriented policy to reduce European and foreign carbon emissions," Climate Policy, Taylor & Francis Journals, vol. 20(S1), pages 28-38, April.
    12. Peter Eppinger & Gabriel J. Felbermayr & Oliver Krebs & Bohdan Kukharskyy, 2021. "Decoupling Global Value Chains," CESifo Working Paper Series 9079, CESifo.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liza Archanskaia & Plamen Nikolov & Wouter Simons & Lukas Vogel, 2024. "Navigating shocks: the performance of the eu corporate sector from the pandemic to the energy crisis," LIDAM Discussion Papers IRES 2024013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Björn Döhring & Atanas Hristov & Christoph Maier & Werner Roeger & Anna Thum-Thysen, 2021. "COVID-19 acceleration in digitalisation, aggregate productivity growth and the functional income distribution," International Economics and Economic Policy, Springer, vol. 18(3), pages 571-604, July.
    2. Cathles, Alison & Nayyar, Gaurav & Rückert, Désirée, 2020. "Digital technologies and firm performance: Evidence from Europe," EIB Working Papers 2020/06, European Investment Bank (EIB).
    3. Teruel Carrizosa, Mercedes & Coad, Alexander & Domnick, Clemens & Flachenecker, Florian & Harasztosi, Péter & Janiri, Mario Lorenzo & Pál, Rozália, 2021. "The birth of new high growth enterprises: Internationalisation through new digital technologies," EIB Working Papers 2021/02, European Investment Bank (EIB).
    4. Grzegorz Szymanski & Robert Stanislawski, 2018. "Research Online - Purchase Offline - A Phenomenon Among The Young Generation In The E-Commerce Sector," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 12(1), pages 185-192.
    5. Alexander Salmen, 2021. "New Product Launch Success: A Literature Review," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 69(1), pages 151-176.
    6. Bas, Maria & Fernandes, Ana & Paunov, Caroline, 2024. "How resilient was trade to COVID-19?," Economics Letters, Elsevier, vol. 240(C).
    7. Briglauer, Wolfgang & Stocker, Volker, 2020. "Bedeutung digitaler Infrastrukturen und Dienste und Maßnahmen zur Förderung der Resilienz in Krisenzeiten," Policy Notes 42, EcoAustria – Institute for Economic Research.
    8. Jian Zhu & Zifang Li & Hui Wang, 2023. "Internet Development and Urban–Rural Consumption Inequality: Evidence from Chinese Cities," Sustainability, MDPI, vol. 15(12), pages 1-15, June.
    9. Doerr, S. & Erdem, M. & Franco, G. & Gambacorta, L. & Illes, A., 2021. "Technological capacity and firms’ recovery from Covid-19," Economics Letters, Elsevier, vol. 209(C).
    10. Mariano Gallo & Mario Marinelli, 2020. "Sustainable Mobility: A Review of Possible Actions and Policies," Sustainability, MDPI, vol. 12(18), pages 1-39, September.
    11. Min Zhong & Zengtao Wang & Xing Ge, 2022. "Does Cross-Border E-Commerce Promote Economic Growth? Empirical Research on China’s Pilot Zones," Sustainability, MDPI, vol. 14(17), pages 1-18, September.
    12. Cirillo, Valeria & Mina, Andrea & Ricci, Andrea, 2024. "Digital technologies, labor market flows and training: Evidence from Italian employer-employee data," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    13. Lee Yub, 2018. "Ecommerce and Firm Performance: Evidence from Korea," Working Papers id:12428, eSocialSciences.
    14. Liang Xiao & Feipeng Guo & Fumao Yu & Shengnan Liu, 2019. "The Effects of Online Shopping Context Cues on Consumers’ Purchase Intention for Cross-Border E-Commerce Sustainability," Sustainability, MDPI, vol. 11(10), pages 1-24, May.
    15. Leogrande, Angelo & Drago, Carlo & Arnone, Massimo, 2024. "Analyzing Regional Disparities in E-Commerce Adoption Among Italian SMEs: Integrating Machine Learning Clustering and Predictive Models with Econometric Analysis," MPRA Paper 122115, University Library of Munich, Germany.
    16. Parteka, Aleksandra & Kordalska, Aleksandra, 2023. "Artificial intelligence and productivity: global evidence from AI patent and bibliometric data," Technovation, Elsevier, vol. 125(C).
    17. Ben Yahmed, Sarra & Berlingieri, Francesco & Brüll, Eduard, 2022. "Adjustments of local labour markets to the COVID-19 crisis: The role of digitalisation and working-from-home," ZEW Discussion Papers 22-031, ZEW - Leibniz Centre for European Economic Research.
    18. Mr. Tidiane Kinda, 2019. "E-commerce as a Potential New Engine for Growth in Asia," IMF Working Papers 2019/135, International Monetary Fund.
    19. Eric Bartelsman & Eva Hagsten & Michael Polder, 2018. "Micro Moments Database for cross‐country analysis of ICT, innovation, and economic outcomes," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 626-648, September.
    20. Martina Francesca Ferracane & Erik van der Marel, 2020. "Patterns of trade restrictiveness in online platforms: A first look," The World Economy, Wiley Blackwell, vol. 43(11), pages 2932-2959, November.

    More about this item

    Keywords

    COVID-19 crisis; Sectoral impact; Digitalisation; Green transition; Global value chains; Canton; Colasanti; Durán; Garrone; Hobza; Simons; Vandeplas.;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euf:ecobri:069. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ECFIN INFO (email available below). General contact details of provider: https://edirc.repec.org/data/dg2ecbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.