How are growth and productivity in private firms affected by public subsidy? Evidence from a regional policy
Copyright policy )How are growth and productivity in private firms affected by public subsidy? Evidence from a regional policy
Abstract The paper provides a statistically robust evaluation of the impact of state aid on capital accumulation in subsidized firms. The analysis considers subsidies allocated to the southern Italian regions over the period 1996–2004 under the regional policy, Law 488/1992. We apply an MDID estimator, taking selection on observables and non observables into account. Results evidence a higher growth in output, employment and fixed assets in subsidized firms but a lesser increase in Total Factor Productivity than in unsubsidized firms. The negative impact on long term productivity and growth reduces the positive temporary effects of regional subsidies.
public subsidies; h71; mdid estimator; regional policy; policy evaluation; r38; mdid estimator.; c14, PUBLIC SUBSIDIES; POLICY EVALUATION; REGIONAL POLICY; MDID ESTIMATOR
public subsidies; h71; mdid estimator; regional policy; policy evaluation; r38; mdid estimator.; c14, PUBLIC SUBSIDIES; POLICY EVALUATION; REGIONAL POLICY; MDID ESTIMATOR
citations This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).177 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Top 1% influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Top 1% impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Top 10%
Citations provided by BIP!Popularity provided by BIP!