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Subsidizing Industry: An Empirical Analysis of Irish Manufacturing

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  • Mark Cassidy
  • Eric Strobl

Abstract

Irish industrial policy makers have a long history of extensively using grant subsidies in order to encourage the creation of jobs in Irish manufacturing sectors. In this paper we empirically investigate the actual success of this strategy using sectoral level data on employment and grant payments over the period 1972--2000. Results from our empirical model of an employment growth equation confirm that grant provision has indeed played a significant role in creating employment.

Suggested Citation

  • Mark Cassidy & Eric Strobl, 2004. "Subsidizing Industry: An Empirical Analysis of Irish Manufacturing," Journal of Industry, Competition and Trade, Springer, vol. 4(2), pages 95-107, June.
    • Handle: RePEc:kap:jincot:v:4:y:2004:i:2:p:95-107
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    References listed on IDEAS

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    Cited by:

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    2. Marjan Petreski, 2022. "State Aid Causing Distinct Incentives? Quasi-Experimental Measurement of the Effects of Grants on Private Enterprises in North Macedonia," Evaluation Review, , vol. 46(2), pages 200-230, April.

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