Do Regional Investment Grants Improve Firm Performance? - Evidence from Sweden
AbstractThe effect of Swedish regional investment grants during 1990-1999 on firm performance, in terms of returns on equity and number of employees, were studied using a propensity-score matching-method to control for sample selection. Firms that received grants did not perform better in terms of returns on equity when compared to matched firms in the control group. In most years, recipient firms also did not hire more employees. The results thus cast doubt on the use of regional investment grants as a general policy instrument to improve firm performance.
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Bibliographic InfoPaper provided by HUI Research in its series HUI Working Papers with number 24.
Length: 19 pages
Date of creation: 01 Nov 2009
Date of revision:
Publication status: Published as Ankarhem, Mattias, Sven-Olov Daunfeldt, Shahiduzzaman Quoreshi and Niklas Rudholm, 'Do Regional Investment Grants Improve Firm Performance? - Evidence from Sweden' in Technology and Investment, 2010, pages 7.
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Economic efficiency; propensity score matching; sample selection; logit regression; panel data;
Other versions of this item:
- Ankarhem, Mattias & Daunfeldt, Sven-Olov & Quoreshi, Shahiduzzaman & Rudholm, Niklas, 2009. "Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden," Ratio Working Papers 137, The Ratio Institute.
- Ankarheim, Mattias & Daunfeldt, Sven-Olov & Quoreshi, Shahiduzzaman & Rudholm, Niklas, 2009. "Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden," Working Papers in Economics 04/09, University of Bergen, Department of Economics.
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Colin Wren, 2005. "Regional grants: are they worth it?," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 245-275, June.
- Richard Harris & Catherine Robinson, 2004. "Industrial Policy In Great Britain And Its Effect On Total Factor Productivity In Manufacturing Plants, 1990-1998," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(4), pages 528-543, 09.
- Richard Harris & Mary Trainor, 2007. "Impact of Government Intervention on Employment Change and Plant Closure in Northern Ireland, 1983-97," Regional Studies, Taylor & Francis Journals, vol. 41(1), pages 51-63.
- Richard Harris & Mary Trainor, 2005. "Capital Subsidies and their Impact on Total Factor Productivity: Firm-Level Evidence from Northern Ireland," Journal of Regional Science, Wiley Blackwell, vol. 45(1), pages 49-74.
- Dimitris Skuras & Kostas Tsekouras & Efthalia Dimara & Dimitris Tzelepis, 2006. "The Effects of Regional Capital Subsidies on Productivity Growth: A Case Study of the Greek Food and Beverage Manufacturing Industry," Journal of Regional Science, Wiley Blackwell, vol. 46(2), pages 355-381.
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