On the vulnerability of economies to the COVID-19: an empirical approach

Abstract

During the confinement due to the Covid-19 crisis, economies survived thanks to the available technology and changes of the production model. To study the vulnerability of the economies against the challenges of the recovery, in this paper, we study the role of some factors related to the development of productive sectors, the use of technology, and the structure of public finances. Using panel data estimations, for the European Union, we identify some characteristics that would help economies to boost economic growth. We find that the employment in sectors with a high technological content is the variable that most drives output growth.