Assessing the economic impact of public industrial policies: an empirical investigation on subsidies

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Assessing the economic impact of public industrial policies: an empirical investigation on subsidies

Author Info

Roberto Gabriele
Marco Zamarian () (DISA, Faculty of Economics, Trento University)
Enrico Zaninotto () (DISA, Faculty of Economics, Trento University)

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Roberto Gabriele

Abstract

Empirical literature findings do not provide a clear-cut interpretation of the effects of public aid on firms' performances. We contribute to this literature analysing the effects of public regional subsidies on investment using a new dataset covering all the firms in the Italian province of Trento, along with a record of public aid granted in the last 15 years. We find permanent positive effects of aid on firms' size, but no effect is found on factor substitution, nor on technical change. Moreover, subsidies do not improve either profitability or productivity. These results help better define the scope for local aid.

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Publisher Info
Paper provided by Department of Computer and Management Sciences, University of Trento, Italy in its series Quaderni DISA with number 111.

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Date of creation: May 2006
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Handle: RePEc:trt:disatr:111

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Paper
- Roberto Gabriele & Marco Zamarian & Enrico Zaninotto, 2006. "Assessing the economic impact of public industrial policies: an empirical investigation on subsidies," ROCK Working Papers 039, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Jun 2008. [Downloadable!]

References listed on IDEAS
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.:

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Other versions:
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Other versions:
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Other versions:
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Other versions:
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Full references

Cited by:
(explanations, 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.)

Nestor Duch Brown & Daniel Montolio Estivill & Mauro Mediavilla, 2007. "Evaluating the Impact of Public Subsidies on a Firms Performance: a Quasi-experimental Approach," Working Papers in Economics 181, Universitat de Barcelona. Espai de Recerca en Economia. [Downloadable!]
Other versions:
- Néstor Duch & Daniel Montolio & Mauro Mediavilla, 2007. "Evaluating the impact of public subsidies on a firm's performance: A quasi-experimental approach," Working Papers 2007/3, Institut d'Economia de Barcelona (IEB). [Downloadable!]
- Néstor Duch & Daniel Montolio & Mauro Mediavilla, 2007. "Evaluating the impact of public subsidies on a firm's performance: A quasi-experimental approach," Working Papers XREAP2007-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2007. [Downloadable!]

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