A Regional Economy’s Resistance to the COVID-19 Shock: Sales Revenues of Micro-, Small-, and Medium-Sized Enterprises in South Korea

Seong-Jin Lee; Joong-Hoo Park; Seung-Min Cha; Donghyun Kim

doi:10.1007/s13753-022-00402-9

Volume 13 Issue 2

Jul. 2022

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Seong-Jin Lee, Joong-Hoo Park, Seung-Min Cha, Donghyun Kim. A Regional Economy’s Resistance to the COVID-19 Shock: Sales Revenues of Micro-, Small-, and Medium-Sized Enterprises in South Korea[J]. International Journal of Disaster Risk Science, 2022, 13(2): 190-198. doi: 10.1007/s13753-022-00402-9

Citation:

Seong-Jin Lee, Joong-Hoo Park, Seung-Min Cha, Donghyun Kim. A Regional Economy’s Resistance to the COVID-19 Shock: Sales Revenues of Micro-, Small-, and Medium-Sized Enterprises in South Korea[J]. International Journal of Disaster Risk Science, 2022, 13(2): 190-198. doi: 10.1007/s13753-022-00402-9

Citation:

Seong-Jin Lee, Joong-Hoo Park, Seung-Min Cha, Donghyun Kim. A Regional Economy’s Resistance to the COVID-19 Shock: Sales Revenues of Micro-, Small-, and Medium-Sized Enterprises in South Korea[J]. International Journal of Disaster Risk Science, 2022, 13(2): 190-198. doi: 10.1007/s13753-022-00402-9

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A Regional Economy’s Resistance to the COVID-19 Shock: Sales Revenues of Micro-, Small-, and Medium-Sized Enterprises in South Korea

doi: 10.1007/s13753-022-00402-9

1 Department of Public Policy and Management, Pusan National University, Busan, 46241, South Korea;
2 Department of Urban Planning and Engineering, Pusan National University, Busan, 46241, South Korea

Funds:

This research was supported by the Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education (2020R1I1A3056561).

Available Online: 2022-07-06

Abstract

Abstract

The coronavirus disease 2019 (COVID-19) is a global pandemic that has heavily impacted not only the health sector, but also the economic sector in general. Many countries have projected a negative economic impact, and the effect on micro-, small-, and medium-sized enterprises (MSMEs) is predicted to be significantly large. This study estimated the regional resistance of MSME sales revenues and identified the regional economic factors that affect resistance by analyzing South Korea, a country with one of the lowest economic impact projections from COVID-19. Resistance was estimated by comparing sales revenues and changes in resistance observed during the early COVID-19 period to those recorded in the same weeks (weeks 6 to 9) of 2019. The factors that affect regional resistance were determined by conducting robust regression and spatial regression analyses. The results show that the number of confirmed COVID-19 cases, a direct risk factor, is negatively related to regional resilience, while diversity is positively related to regional resistance. To improve the regional resistance against uncertain events, this study recommends increased diversity among regional industrial structures to reduce the duration of the early shock of an unexpected adverse event.
- COVID-19,
- Economic resistance,
- MSMEs,
- South Korea

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References(47)

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