Kiel Working Papers, Kiel Institute for World Economics
No 1607:
The effect of grant receipt on start-up size: Evidence from plant level data
Sourafel Girma, Holger Görg, Aoife Hanley and Eric Strobl
Abstract: In this paper we use plant level data on the start-up size
of new plant entries and detailed information on the grants received by
such plants in order to investigate whether grant receipt encourages plants
to start-up with more employment than without support. The data relate to
manufacturing plants in the Republic of Ireland, where industrial policy
has a long history of using discretionary grants to encourage employment
growth. We use a matching procedure to deal with the issue of selectivity
into grant receipt, and a quantile regression estimator to allow for
different effects of grants on plants depending on their position in the
start-up size distribution. Our results provide evidence that grants do
indeed encourage plants to start-up larger. We also find that this effect
is generally higher for foreign than for domestic plants, and that it
differs for plants at different quantiles of the start-up size
distribution
Keywords: grants, subsidies, entry, start-up size; (follow links to similar papers)
JEL-Codes: H2,; L2; (follow links to similar papers)
35 pages, March 2010
Before downloading any of the electronic versions below
you should read our statement on
copyright.
Download GhostScript
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Downloadable files:
the-effect-of-grant-recei ... nce-from-plant-level-data
Download Statistics
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design Joakim Ekebom