The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economics
AbstractThis paper analyses the impact of subsidies for the promotion of Italian joint ventures (JVs) aimed at LDCs and transition economies. The empirical analysis is carried out on a unique dataset of 172 JVs interviewed during 1998 by means of a closed-answer qualitative-quantitative questionnaire. The main finding of the study is that, although there is a significant deadweight component in incentive policy, the subsidized firms are significantly more likely to grow. Moreover, the JVs comprising new firms (which need to grow to survive) also have a higher employment performance than average, as do the (labour intensive) JVs motivated by the search for lower labour costs, and the JVs in east European countries.
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Bibliographic InfoPaper provided by Dipartimento Scienze Economiche, Universita' di Bologna in its series Working Papers with number 386.
Date of creation: 2000
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Other versions of this item:
- Giorgio Barba Navaretti & Enrico Santarelli & Marco Vivarelli, 2002. "The role of subsidies in promoting Italian joint ventures in least developed and transition economies," Applied Economics, Taylor and Francis Journals, vol. 34(12), pages 1563-1569.
- Giorgio BARBA NAVARETTI & Enrico SANTARELLI & Marco VIVARELLI, 2000. "The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economies," Working Papers 144, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
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