COVID-19 Policies and Payment Delays: Panel Data Insights from Korea's Food Industry

Minkyoung Kim, Gun Il Kim, Yo Han Lee, Beakcheol Jang

Abstract: COVID-19 recognized as the fifth deadliest pandemic in recorded history, has had profound impacts on global economic activities, notably in the food industry. This study investigates the financial repercussions within Korea's food sector, focusing on arrears and delayed payments from January 2020 to December 2022. Utilizing logistic regression and panel data analysis techniques, we analyze a dataset of 120 food sector firms to determine the key factors influencing arrears' delay amounts. Our research assesses the effects of policy stringency indices and confirmed COVID-19 cases on the likelihood of payment delays, alongside considering city-specific impacts to address regional disparities in financial health. Despite existing literature on policy impacts during economic shocks, studies specifically exploring the effects of COVID-19-related policies on payment behaviors in the food industry are limited. Our findings contribute to this gap by providing empirical insights into the complex relationship between pandemic-driven policies and their economic consequences. Methodologically, the study uses logistic regression models to estimate the probability of arrears delays, incorporating adjustments for unobserved heterogeneity and temporal dynamics. The results highlight significant implications for policymakers and underscore the need for targeted interventions to mitigate financial instability in the food sector. Future research directions are also discussed.

External IDs:dblp:conf/icaiic/KimKLJ25