Work

Governmental Revenue Compensation during COVID-19: Did Firm Resources and Institutional Factors Explain Who Received It?

Year: 2024

Type: article

Abstract: During COVID-19, the Norwegian Government provided compensation to amend firms’ decreased revenues, yet it should be neutral and tailored to losses only. However, firm resources or institutional factors may have influenced the compensation, which we study here. Survey data showed a high probability of compensation among large firms, although they were not hit particularly hard by COVID-19. Also, compensation was prevalent for firms in the hospitality, tourism, and culture industry, and a likely explanation is that they were hit hard. However, their probability of compensation was prevalent compared to firms in other industries, regardless of revenue losses. We assume that large firms’ compensation was due to their resources to apply for funding successfully, while institutional factors explained the compensation for firms in the hospitality, tourism, and culture industry.

Source: Tourism and Hospitality

DOI: 10.3390/tourhosp5030046

Authors: Jarle Aarstad, Stig-Erik Jakobsen, Arnt Fløysand, Olav Andreas Kvitastein

Institution: Western Norway University of Applied Sciences

Language: English

Topic: COVID-19 Pandemic Impacts

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $1,364