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Can SME Policies Improve Firm Performance? Evidence from an Impact Evaluation in Argentina

Author

Listed:
  • Victoria Castillo

    (Ministry of Labor, Employment, and Social Security, Buenos Aires, Argentina)

  • Alessandro Maffioli

    (Interamerican Development Bank, Washington, DC)

  • Ana P. Monsalvo

    (Universidad Nacional de General Sarmiento, Buenos Aires, Argentina)

  • Sofía Rojo

    (Ministry of Labor, Employment, and Social Security, Buenos Aires, Argentina)

  • Rodolfo Stucchi

    (ECONFOCUS, Córdoba, Argentina)

Abstract

This paper evaluates the impact of the Argentine SME support program PRE on employment, real wages, and exports. The program aimed at increasing the competitiveness of SMEs by co-financing up to fifty percent of expenditures in professional services and technical assistance. We use a unique panel dataset constructed with administrative records. We combine Propensity Score Matching and Difference in Differences methods to control for selection biases in the estimations. We find a positive and quantitatively important impact of the program on employment and a positive although smaller impact on real wages and the probability of exporting. We also find that the effect of the program on wages and the probability of exporting take place one year after beneficiaries receive the program. The effect of the program on employment takes place one, two, and even, three years after beneficiaries receive the program.

Suggested Citation

  • Victoria Castillo & Alessandro Maffioli & Ana P. Monsalvo & Sofía Rojo & Rodolfo Stucchi, 2010. "Can SME Policies Improve Firm Performance? Evidence from an Impact Evaluation in Argentina," OVE Working Papers 0710, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    • Handle: RePEc:idb:ovewps:0710
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    Citations

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    Cited by:

    1. Caio Piza & Tulio Antonio Cravo & Linnet Taylor & Lauro Gonzalez & Isabel Musse & Isabela Furtado & Ana C. Sierra & Samer Abdelnour, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 12(1), pages 1-167.
    2. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
    3. Tulio Cravo & Caio Piza, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low -and Middle- Income Countries: A Meta-Analysis," IDB Publications (Working Papers) 94938, Inter-American Development Bank.
    4. repec:ilo:ilowps:486341 is not listed on IDEAS

    More about this item

    Keywords

    Public Policy Evaluation; SMEs; Employment; Wages; Exports; Argentina; Difference in Differences; Propensity Score Matching;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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