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Can SME Policies Improve Firm Performance? Evidence from an Impact Evaluation in Argentina

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Author Info

  • Victoria Castillo

    (Ministry of Labor, Employment, and Social Security, Buenos Aires, Argentina)

  • Alessandro Maffioli

    ()
    (Interamerican Development Bank, Washington, DC)

  • Ana P. Monsalvo

    (Universidad Nacional de General Sarmiento, Buenos Aires, Argentina)

  • Sofía Rojo

    (Ministry of Labor, Employment, and Social Security, Buenos Aires, Argentina)

  • Rodolfo Stucchi

    ()
    (ECONFOCUS, Córdoba, Argentina)

Abstract

This 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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File URL: http://idbdocs.iadb.org/WSDocs/getdocument.aspx?docnum=35545433
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Bibliographic Info

Paper provided by Inter-American Development Bank, Office of Evaluation and Oversight (OVE) in its series OVE Working Papers with number 0710.

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Length: 23 pages
Date of creation: Dec 2010
Date of revision:
Handle: RePEc:idb:ovewps:0710

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Related research

Keywords: Public Policy Evaluation; SMEs; Employment; Wages; Exports; Argentina; Difference in Differences; Propensity Score Matching;

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Cited by:
  1. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
  2. repec:idb:brikps:58758 is not listed on IDEAS
  3. repec:idb:brikps:62658 is not listed on IDEAS

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