Effect of COVID-19 Stimulus Packages on Nations' Competitive Advantage.

The article analyzes the impact of fiscal stimulus packages announced by G-20 governments in response to COVID-19 on the competitive advantage of their nations. Using the growth-share matrix and the 4E framework (entrenching, empowering, enterprising, enriching), the study finds that Japan, the USA, India, Australia, and Canada allocated relatively large stimulus packages as a percentage of GDP, potentially enhancing their future trade shares and competitive positions. The stimulus was primarily directed toward four sectors: health, social security, industry and construction, and small and medium enterprises (SMEs), indicating key areas for global firms to consider for investment or expansion. The study highlights that the effectiveness of these stimulus packages in fostering competitive advantage depends on strategic allocation and efficient implementation, while noting limitations due to the descriptive nature of the analysis and evolving data.