IDEAS home Printed from https://ideas.repec.org/a/cvv/journ5/v4y2017i1p76-82.html

The Association between Subsidies and Productivity: Panel Analysis

Author

Listed:
  • C neyt KOYUNCU

    (Bilecik eyh Edebali University, Faculty of Economics and Administrative Sciences, Department of Economics, Bilecik, Turkey.)

  • Y ksel OK AK

    (Bilecik eyh Edebali University, Pazaryeri Vocational School, Bilecik, Turkey.)

Abstract

This study investigates the impact of subsidies, which is a proxy for incentives given to firms in an economy, on value added created by entire economy and four different sectors (i.e., agriculture, manufacturing, industry, and services). The largest period under study is between 1972 and 2013 and the largest sample covers 151 countries. First of all univariate and multivariate fixed time effect models (FEM) and the following univariate and multivariate random time effect models (REM) were estimated using unbalanced panel data. Value added and its logarithmic values are used in the model as a dependent variable. Five different value added variables are used in order to evaluate the sensitivity and validity of our empirical results. This study empirically investigates the effect of subsidy on value added level of a country. In order to test this relationship the study use five different indicators for value added. The data used in analyses are unbalanced data and cover the years between 1972 and 2013 for 151 countries in the largest sense. The main finding of the study implies that countries with higher subsidy level experience higher level of value added.

Suggested Citation

  • C neyt KOYUNCU & Y ksel OK AK, 2017. "The Association between Subsidies and Productivity: Panel Analysis," Journal of Economics Library, EconSciences Journals, vol. 4(1), pages 76-82, March.
    • Handle: RePEc:cvv:journ5:v:4:y:2017:i:1:p:76-82
    as

    Download full text from publisher

    File URL: http://econsciences.com/index.php/JEL/article/download/1228/1189
    Download Restriction: no
    File URL: http://econsciences.com/index.php/JEL/article/view/1228
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cvv:journ5:v:4:y:2017:i:1:p:76-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bilal KARGI (email available below). General contact details of provider: https://journals.econsciences.com/index.php/JEL .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.