The impact of COVID-19 on formal firms: Lessons from administrative tax data

• 成果类型: Article
• 署名作者: Bachas, Pierre; Brockmeyer, Anne; Garriga, Pablo; Semelet, Camille
• 署名单位: The World Bank; University of Munich; Leibniz Association; Ifo Institut
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2025.103461
• 发表日期: 2025
• 关键词: covid-19; FIRMS; corporate income tax; Administrative tax data

摘要

Most low-income countries lack high-frequency firm-level data to monitor the effect of economic shocks in real time. We examine whether administrative tax data can help fill this gap, in the context of the COVID-19 pandemic. In spring 2020, we used the full population of corporate tax returns for 2019 in six developing countries to predict the effect of COVID-induced shocks on formal firms' activity. Comparing the predictions to the realized 2020 data, we find that firms were more resilient than predicted: the share of unprofitable firms increased by only 7 percentage points, while aggregate profits and taxes paid remained stable. The simulations failed to anticipate that labor and capital inputs would flexibly adjust and that large firms would be very resilient. Complementing our simulations with higher-frequency VAT data would have markedly improved predictions.