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Who benefits from GRW? Heterogeneous employment effects of investment subsidies in Saxony Anhalt

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  • Dettmann, Eva
  • Titze, Mirko
  • Weyh, Antje

Abstract

The paper estimates the plant level employment effects of investment subsidies in one of the most strongly subsidized German Federal States. We analyze the treated plants as a whole, as well as the influence of heterogeneity in plant characteristics and the economic environment. Modifying the standard matching and difference-in-difference approach, we develop a new procedure that is particularly useful for the evaluation of funding programs with individual treatment phases within the funding period. Our data base combines treatment, employment and regional information from different sources. So, we can relate the absolute effects to the amount of the subsidy paid. The results suggest that investment subsidies have a positive influence on the employment development in absolute and standardized figures - with considerable effect heterogeneity.

Suggested Citation

  • Dettmann, Eva & Titze, Mirko & Weyh, Antje, 2017. "Who benefits from GRW? Heterogeneous employment effects of investment subsidies in Saxony Anhalt," IWH Discussion Papers 27/2017, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:272017
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    Cited by:

    1. Sven Wardenburg & Thomas Brenner, 2020. "How to improve the quality of life in peripheral and lagging regions by policy measures? Examining the effects of two different policies in Germany," Journal of Regional Science, Wiley Blackwell, vol. 60(5), pages 1047-1073, November.
    2. Holtemöller, Oliver & Schult, Christoph, 2019. "Stellungnahme zum "Strukturstärkungsgesetz Kohleregionen" anlässlich der Anhörung im Ausschuss für Wirtschaft und Energie des Deutschen Bundestages am 15. Mai 2019," IWH Online 2/2019, Halle Institute for Economic Research (IWH).
    3. Brachert, Matthias & Giebler, Alexander & Heimpold, Gerhard & Titze, Mirko & Urban-Thielicke, Dana, 2018. "IWH-Subventionsdatenbank: Mikrodaten zu Programmen direkter Unternehmenssubventionen in Deutschland. Datendokumentation," IWH Technical Reports 2/2018, Halle Institute for Economic Research (IWH).
    4. Brachert, Matthias & Brautzsch, Hans-Ulrich & Dettmann, Eva & Giebler, Alexander & Schneider, Lutz & Titze, Mirko, 2020. ""Evaluation der Gemeinschaftsaufgabe 'Verbesserung der regionalen Wirtschaftsstruktur' (GRW)" durch einzelbetriebliche Erfolgskontrolle: Endbericht," IWH Online 5/2020, Halle Institute for Economic Research (IWH).
    5. Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20 [Dealing with Structural Change. Annual Report 2019/20]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920.

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    More about this item

    Keywords

    evaluation; industrial policy; matching; difference-in-difference;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • Z0 - Other Special Topics - - General

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