Template-Type: ReDIF-Paper 1.0 Author-Name: Biswajit Banerjee Author-Name-First: Biswajit Author-Name-Last: Banerjee Author-Email: bisban50@gmail.com Author-Workplace-Name: Ashoka University; National Bank of Slovakia Author-Name: Jelena Ćirjaković Author-Name-First: Jelena Author-Name-Last: Ćirjaković Author-Email: Author-Workplace-Name: Bank of Slovenia Title: The Impact of the Covid-19 Pandemic on the Non-financial Corporate Sector in Slovenia Abstract: Using annual firm-level data for Slovenia, this paper examines the impact of the Covid-19 pandemic on firm exit, sales, employment and 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 but did not intensify. Small and young firms were not impacted disproportionately more from the pandemic shock compared to the pre-Covid period. Government financing support had a strong positive effect on facilitating employment growth. Such support went to firms with greater need. There was little evidence of misallocation of resources towards zombie firms and low productivity firms. length: 58 Creation-Date: 20231113 Revision-Date: Publication-Status: File-URL:https://dp.ashoka.edu.in/ash/wpaper/paper108_0.pdf File-Format: Application/pdf Number: 108 Keywords: COVID-19 Keywords: Firm exit Keywords: FTE employment Keywords: government financing support Keywords: sales outcome Handle: RePEc:ash:wpaper:108