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Business Resilience of Bangladeshi Firms during COVID-19 and Lessons for Future Crises in South Asia
Abstract
While the COVID-19 pandemic unleashed unprecedented shocks on both the supply and demand sides, it is important to understand its impact on firms with different characteristics. In this regard, we use data from the Business Confidence Survey conducted on 303 firms in Bangladesh by SANEM, in collaboration with The Asia Foundation (TAF), in April 2020, to examine whether firms differing in size, stimulus package reception status, and categories across major manufacturing and service sub-sectors were impacted differently by the COVID-19 pandemic. We construct a “Business Status Index (BSI)” to assess the factors influencing a firm’s business performance during the pandemic. We employ the chi2 statistic and the ordered logit model to determine whether, and to what extent, factors such as firm size, location, stimulus package reception, and sectoral variables significantly influenced business status. Our study adds value to the existing literature by addressing the knowledge gap regarding the micro-level impact of the pandemic in the context of Bangladesh. It also highlights the vulnerabilities of micro and small enterprises and exporters (e.g., RMG), which need to be considered in policymaking during times of crisis.
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DOI: https://doi.org/10.33687/jsas.012.01.4876
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Journal of South Asian Studies
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