Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden
The effect of Swedish regional investment grants during 1990-1999 on firm performance, in terms of returns on equity and number of employees, were studied using a propensity-score matching-method to control for sample selection. Firms that received grants did not perform better in terms of returns on equity when compared to matched firms in the control group. In most years, recipient firms also did not hire more employees. The results thus cast doubt on the use of regional investment grants as a general policy instrument to improve firm performance.
|Date of creation:||01 Apr 2009|
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- Richard Harris & Mary Trainor, 2007. "Impact of Government Intervention on Employment Change and Plant Closure in Northern Ireland, 1983-97," Regional Studies, Taylor & Francis Journals, vol. 41(1), pages 51-63.
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- Colin Wren, 2005. "Regional grants: are they worth it?," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 245-275, June.
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