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Methods applied in evaluating business subsidy programs: A survey

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  • Takis Venetoklis

Abstract

This paper surveys evaluation studies of business subsidy programs conducted in Finland and abroad. The aim is to assess the evaluation methods applied and then recommend the most appropriate ones applicable in Finland. In the paper twenty seven studies are analysed; eighteen using Finnish data and the rest, data from other countries. In the study, evaluation methods are divided into two types: ones which gather data and others which analyse them. We found that the evaluation methods utilised are associated with the results produced. Interestingly, also the commissioner of the evaluations seems to play a role in the results reported. The study recommends among others, that estimations on the impacts of business subsidy programs should not be based on primary data (from interviews or questionnaires of recipient firms) but rather on secondary data (from financial statements of firms). In addition, ex post evaluations, utilising both descriptive and econometric methods of analysis, should be the main focus of evaluation activities in the ministries and agencies distributing these business subsidies.

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Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 236.

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Date of creation: 19 Dec 2000
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Handle: RePEc:fer:dpaper:236

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Keywords: Evaluation methods; business subsidy programs;

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  1. Lee, Jong-Wha, 1996. " Government Interventions and Productivity Growth," Journal of Economic Growth, Springer, vol. 1(3), pages 391-414, September.
  2. Honohan, Patrick, 1998. "Key issues of Cost-Benefit Methodology for Irish Industrial Policy," Research Series, Economic and Social Research Institute (ESRI), number GRS172.
  3. Takis Venetoklis, 1999. "Process Evaluation of Business Subsidies in Finland. A Quantitative Approach," Research Reports 58, Government Institute for Economic Research Finland (VATT).
  4. Bruno Van Pottelsberghe & Henri Capron, 1997. "Public support to business R&D: a survey and some new quantitative evidence," ULB Institutional Repository 2013/6283, ULB -- Universite Libre de Bruxelles.
  5. Takis Venetoklis, 2000. "Impact of Business Subsidies on Growth of Firms - Preliminary Evidence from Finnish Panel Data," Discussion Papers 220, Government Institute for Economic Research Finland (VATT).
  6. Levy, David M., 1990. "Estimating the impact of government R&D," Economics Letters, Elsevier, vol. 32(2), pages 169-173, February.
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