Firm Exit and the Take-Up of Government Financing Support During the COVID-19 Pandemic: Evidence from Slovenia

Using annual firm-level data for Slovenia, this paper examines the impact of the COVID-19 pandemic on firm exit and the take-up of different types of government financing support. The outcomes in the pandemic year are compared with those in the pre-Covid and post-Covid periods. The firm exit rate did not increase during the pandemic period. The process of cleansing out of less productive firms was still at work during the pandemic. Small and young firms were not impacted disproportionately more from the pandemic shock compared to the pre-Covid period. Government financing support went to firms with greater need for support.