The impact of COVID-19 on the productivity of large companies in Taiwan

ABSTRACT

The outbreak of COVID-19 at the end of 2019 spreads over the world extensively and rapidly. The daily lives are affected by lockdowns, work-from-home, and travel bans. The economic growth is stagnated. Many industries are severely affected by this pandemic. There are, however, also industries that are unexpectedly benefited from the pandemic. The objective of this paper is to investigate the industries in Taiwan that are affected by the pandemic. Samples of the top 1,000 manufacturing and the top 500 service companies in Taiwan are collected to calculate their productivities before the pandemic, in the period of 2016–2019, and during the pandemic, in the year of 2020. The results show that three industries automobile, tourism, and electronic products distribution, have their productivities significantly decreased by 3.98%, 4.92%, and 1.27%, respectively. There are also four industries electronic components, optoelectronic, electrical and cable, and oil, gas and electricity, whose productivities are unexpectedly increased significantly by 1.37%, 1.98%, 3.32%, and 4.31%, respectively. The impact of COVID-19 to large companies in Taiwan seems to be not severe. In 2021, approximately five sixths of the industries have their productivities increased. There are only five industries whose productivities become lower;however, the decreases are not significant, indicating that the economy in Taiwan is recovering from the pandemic.