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In Spring 2020, Western Balkan countries - like most others in the world-have been forced to impose tight restrictions on economic life to contain the COVID-19 (Coronavirus) pandemic. In the first half of 2020, the world has seen explosive growth of infections with the deadly novel virus. As country after country has been forced to shut down large areas of social and economic life to slow contagion, the Western Balkans have not been spared. The first cases were recognized as early as the first week of March. As of April 27, 2020, the Johns Hopkins corona virus data center now reports that over 11,000 cases have been confirmed in the six countries in the region. In response, all six have enforced lockdowns and strict social distancing measures. International airports in all countries were closed for passenger traffic. The initial lockdowns have been extended. The capitals of Kosovo and Albania are under quarantine, as are other cities in the region. Key economic sectors, such as restaurants and nonessential retail, have been shut down. Travel and social gatherings have been restricted or banned, and schools and universities have been closed. The RER No. 17 is a collection of notes on the Economic and Social Impact of COVID-19. This includes three Notes: "Setting the stage: Reviewing the state and vulnerabilities of the Western Balkan Economies as they face COVID-19"; "Outlook: Hard Times Require Good Economics"; and the Western Balkan Country Notes.

Business Cycles and Stabilization Policies --- Economic Conditions and Volatility --- Economic Growth --- Fiscal and Monetary Policy --- Macroeconomic Management --- Macroeconomics and Economic Growth

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This paper uses a unique data set that captures the elimination of subnational regulatory barriers to firm entry and competition across 1,800 municipalities and matches it with establishment census panel data to estimate the impact on establishment productivity and markups. The elimination of local barriers that were inconsistent with national legislation was the result of legal reforms that strengthened the mandate of Peru's competition authority. Legislative changes in 2013/14 empowered the competition authority to enforce the elimination of illegal, sector-specific subnational regulatory barriers to firm entry and competition, conditional on the existence of a precedence. The changes provide a unique quasi-experimental setting to identify the impact of enforcing competition within the controlled institutional environment of a single country. The paper finds that the elimination of subnational barriers to entry boosted the (revenue) productivity of establishments operating in reform municipalities and sectors relative to establishments in nonreform municipalities/sectors. But it did not raise the establishments' markups, which, if anything, declined, suggesting that physical productivity improved. The paper provides a wide range of evidence supporting a causal interpretation of this finding. The results suggest that strengthening the mandate of institutions enforcing competition is critical to raise productivity.

Business Cycles and Stabilization Policies --- Common Carriers Industry --- Competition --- Competition Policy --- Competitiveness and Competition Policy --- Construction Industry --- Employment and Unemployment --- Food and Beverage Industry --- General Manufacturing --- Industry --- International Trade and Trade Rules --- Plastics and Rubber Industry --- Productivity --- Pulp and Paper Industry --- Social Protections and Labor --- Structural Reforms --- Subnational --- Textiles Apparel and Leather Industry --- Total Factor Productivity --- Transport