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The effects of enterprise relief grants during COVID-19

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  • Telegdy, Álmos

Abstract

I study subsidized investment loans given to companies in financial distress due to the COVID-19 pandemic. I combine matching and panel data techniques and find that sales increased by 7% and employment by 4% in firms receiving loans.

Suggested Citation

  • Telegdy, Álmos, 2024. "The effects of enterprise relief grants during COVID-19," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523005086
    DOI: 10.1016/j.econlet.2023.111482
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    References listed on IDEAS

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    1. Lalinsky, Tibor & Pál, Rozália, 2022. "Distribution of COVID-19 government support and its consequences for firm liquidity and solvency," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 305-335.
    2. Hoshi, Takeo & Kawaguchi, Daiji & Ueda, Kenichi, 2023. "Zombies, again? The COVID-19 business support programs in Japan," Journal of Banking & Finance, Elsevier, vol. 147(C).
    3. Morikawa, Masayuki, 2021. "Productivity of firms using relief policies during the COVID-19 crisis," Economics Letters, Elsevier, vol. 203(C).
    4. Ondřej Dvouletý & Stjepan Srhoj & Smaranda Pantea, 2021. "Public SME grants and firm performance in European Union: A systematic review of empirical evidence," Small Business Economics, Springer, vol. 57(1), pages 243-263, June.
    5. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
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    Cited by:

    1. Telegdy, Álmos, 2024. "Subsidized working capital loans and firm growth in times of crisis," Economics Letters, Elsevier, vol. 245(C).
    2. Masayuki MORIKAWA, 2025. "Performance of Firms Using COVID-19-related Support Policies: Ex-post evaluation," Discussion papers 25107, Research Institute of Economy, Trade and Industry (RIETI).
    3. Telegdy, Álmos & Tóth, Gábor, 2024. "A támogatott hitelezés hatásvizsgálata Magyarországon [Impact assessment of subsidised loans in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 113-130.
    4. Fucheng Liang & Yi Liu, 2026. "What can governments do for economic recovery? The economic impact of tourism subsidies," Tourism Economics, , vol. 32(1), pages 222-228, February.

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    More about this item

    Keywords

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    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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