The effect of grant receipt on start-up size: Evidence from plant level data
AbstractIn 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
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Bibliographic InfoArticle provided by Springer in its journal Journal of International Entrepreneurship.
Volume (Year): 8 (2010)
Issue (Month): 4 (December)
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Web page: http://www.springerlink.com/link.asp?id=112039
Grants; Subsidies; Entry; Start-up size;
Other versions of this item:
- Sourafel Girma & Holger Görg & Aoife Hanley & Eric Strobl, 2010. "The effect of grant receipt on start-up size: Evidence from plant level data," Kiel Working Papers 1607, Kiel Institute for the World Economy.
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
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