The ongoing COVID-19 pandemic has evolved beyond being a public health crisis as it has exerted worldwide severe economic impacts, triggering cascading failures in the global industrial network. Although certain powerful enterprises can remain its normal operation during this global shock, what's more likely to happen for the majority, especially those small- and medium-sized firms, is that they are experiencing temporary suspension out of epidemic control requirement, or even permanent closure due to chronic business losses. For those enterprises that sustain the pandemic and only suspend for a relatively short period, they could resume work and production when epidemic control and prevention conditions are satisfied and production and operation are adjusted correspondingly. In this paper, we develop a novel quantitative framework which is based on the classic susceptible-infectious-recovered (SIR) epidemiological model (i.e., the SIR model), containing a set of differential equations to capture such enterprises' reactions in response to COVID-19 over time. We fit our model from the resumption of work and production (RWP) data on industrial enterprises above the designated size (IEDS). By modeling the dynamics of enterprises' reactions, it is feasible to investigate the ratio of enterprises' state of operation at given time. Since enterprises are major economic entities and take responsibility for most output, this study could potentially help policy makers better understand the economic impact caused by the pandemic and could be heuristic for future prevention and resilience-building strategies against suchlike outbreaks of public health crises.
Keywords: COVID-19 pandemic; SIR model; economic loss; industrial enterprises; simulation.
Copyright © 2022 Zhao, Huang, Xu, Tang and Chen.