Sectoral Impacts of the Activity Standstill due to External Shocks such as COV ID-19: An Approach Based on the Hypothetical Extraction Applied to the External Insertion of the Spanish Economy

Abstract

The COVID-19 pandemic has brought economic activity to a standstill unprecedented in recent history. The aim of this paper is to analyse the potential economic and sectoral impact resulting from suspension of certain activities. The analysis of production linkages and the hypothetical extraction method constitute the methods are applied, taking as a reference trade relation of Spain with the EU, USA and China in 2015. The results obtained based on the four possible scenarios proposed show a decline in GDP due to the paralysis of a set of sectors, revealing the existence of strong production linkages through Global Value Chains.

The role of innovation and internationalization support in small‐ and medium‐sized enterprises’ export performance

“…Therefore, it is useful to understand the export performance of firms that survived a crisis and operate in a drastically deteriorated business environment to gain insights into the post‐COVID‐19 era. The literature concerning the effects of the COVID‐19 crisis on Greece and other economies is growing (Ceylan, Ozkan, & Mulazimogullari, 2020; Romero & Marzábal, 2020; Mariolis, Rodousakis, & Soklis, 2021). Although the full extent of the pandemic's impact on the economy is currently unknown, growing evidence suggests that it is severe (Baldwin & Weder di Mauro, 2020) and, hence, is very likely to cause a similar economic climate to that of Greece.…”