Effects of the COVID-19 Pandemic on The Growth and Profitability of Colombian Manufacturing Firms
Abstract
The objeective of this analysis is to evaluate the impact of the COVID-19 pandemic on the behavior of growth and business profitability in Colombia. To achieve this, a method involving the analysis of financial data from 850 Colombian companies was employed. This approach utilized a panel data methodology, applying the statistical model of fixed effects and first differences. The results obtained confirmed the existing relationship between profitability and business growth. Additionally, there were no indications of codependency between there variables, as this relationship depends on the specific aspects of each context. Positive as well as negative impacts caused by COVID-19 on the analyzed variables were observed. Subsequent discussions following the analysis align with other studies, emphasizing the presence of the relationship between profitability and business growth. Likewise, it is noted that while most of the impacts of COVID-19 exhibit similarities, they vary according to the specific context of each company. The magnitude of these impacts in linked to the efficiency of responses implemented by both governments and companies themselves. These factors influence the interpretation of the results and their implications. In conclusion, this study underscores the importance of delving into models that allow the precise quantification of the impacts generated by COVID-19 on business profitability and growth. Furthermore, the need to continue studying trends in these variables, even in post-pandemic periods, is emphasized with the objective of better comprehending the long-term effects on the Colombian business environment.
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References
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