Abstract

The paper assesses the impact of the COVID-19 spread and measures of government support on the firms' productivity dynamics, its sectoral and regional heterogeneity. The work is structured as follows: the first section presents an analysis of the impact of the COVID-19 shock on various sectors of the Russian economy, examines the dynamics of firms' performance during the COVID-19, its industry and regional features, and systematizes a list of government measures to support enterprises during the COVID-19. The second section provides a literature review assessing the impact of supply and demand shocks, as well as state support measures on firms' performance, and discusses the basis for analyzing various aspects of firms' productivity. The third section presents the empirical strategy and the results of the empirical assessment of the impact of the COVID-19 shock and the support measures on the productivity of firms, provides within-firm and between-firm effects of COVID-19, its selection and reallocation effects. At the end of the work, the main conclusions of the study and recommendations are presented.