The impact of the pandemic on industries : A conceptual map and key processes

This paper investigages the consequences of the COVID-19 crisis on world industry based on a conceptual map that allows identification of key drivers at different levels of analysis, of the impacts' main channels of transmission and the major variables that characterize these effects. A conceptual map of the key mechanisms affecting world industry is presented, followed by an analysis of the available data and indicators, which can shed some light on ongoing processes. The dynamics that affect industries and firms and the role of government policies are also investigated. A particular focus is devoted to emerging and developing countries, and the role of industrial capabilities as a key driver of resilience. Governments' policy response were targeted at containing losses resulting from the pandemic and at accelerating recovery. Large-scale government interventions in the economy were introduced in many countries, with hight public expenditure providng direct support to firms, new forms of industrial policy, and renewed investment in public health systems and vaccine research and production. However, the scale of additional public spending does not necessarily reflect the extent of the pandemic's impact; instead, it seems to reflect governments' overall policy space: larger, richer economies with greater autonomy in monetary and fiscal polities have been particularly active in protecting their economies.