Survival of firms in developing economies during economic crisis

Publication Date
Financial Markets Group Special Papers SP 255
Publication Authors

With lockdown measures in place worldwide, cash-flow represents a significant concern for firms across multiple sectors. This chapter estimates the survival time of more than 11,000 firms in 34 low- and lower-middle-income economies. Under the assumptions that firms have no incoming revenues, the median survival time across industries ranges from 6 to 28 weeks. Once collapsed export demand is taken into account, the median survival time falls to between 6 and 18 weeks.