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Capital Subsidies and their Impact on Total Factor Productivity: Firm‐Level Evidence from Northern Ireland

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  • Richard Harris
  • Mary Trainor

Abstract

. Manufacturing industry in Northern Ireland receives extensive financial support from government with the objective of improving the economic performance of the plants that are directly assisted. Many studies have tried to assess the impact of such assistance, but without the counterfactual evidence it is difficult to ascertain whether or not such support does improve performance. The aim of this paper is to use a unique matched data set to establish if such assistance has made a difference to total factor productivity in Northern Ireland manufacturing plants.

Suggested Citation

  • 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, February.
    • Handle: RePEc:bla:jregsc:v:45:y:2005:i:1:p:49-74
    DOI: 10.1111/j.0022-4146.2005.00364.x
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    1. Bergström, Fredrik, 1998. "Capital Subsidies and the Performance of Firms," SSE/EFI Working Paper Series in Economics and Finance 285, Stockholm School of Economics.
    2. Colin Wren, 1996. "Industrial Subsidies," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-37257-3.
    3. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455.
    4. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    5. Evans, Andrew, 1999. "The EU Structural Funds," OUP Catalogue, Oxford University Press, number 9780198268284.
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