Can SME Policies Improve Firm Performance? Evidence from an Impact Evaluation in Argentina
AbstractThis paper evaluates the impact of the Argentine SME support program PRE on employment, real wages, and exports. The program aimed at increasing the competitiveness of SMEs by co-financing up to fifty percent of expenditures in professional services and technical assistance. We use a unique panel dataset constructed with administrative records. We combine Propensity Score Matching and Difference in Differences methods to control for selection biases in the estimations. We find a positive and quantitatively important impact of the program on employment and a positive although smaller impact on real wages and the probability of exporting. We also find that the effect of the program on wages and the probability of exporting take place one year after beneficiaries receive the program. The effect of the program on employment takes place one, two, and even, three years after beneficiaries receive the program.
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Bibliographic InfoPaper provided by Inter-American Development Bank, Office of Evaluation and Oversight (OVE) in its series OVE Working Papers with number 0710.
Length: 23 pages
Date of creation: Dec 2010
Date of revision:
Public Policy Evaluation; SMEs; Employment; Wages; Exports; Argentina; Difference in Differences; Propensity Score Matching;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
- NEP-ENT-2011-02-05 (Entrepreneurship)
- NEP-SBM-2011-02-05 (Small Business Management)
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- Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
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