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Mexico : impact evaluation of sme programs using panel firm data

Author

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  • Lopez-Acevedo , Gladys
  • Tinajero, Monica

Abstract

Unlike social programs targeting individuals, few enterprise support programs have been rigorously evaluated, and existing evaluations have mostly been done in high-income countries such as the United States and Europe. Mexico spends a large share of government resources on small and medium enterprise programs each year. How effective these programs have been in achieving their objectives is unclear. In Mexico, impact evaluations of small and medium enterprise programs are rare, and most are qualitative in nature. This is the first paper evaluating these programs in Mexico using firm-level panel data. The continuous and ten-year panel data -- from the 1994-2005 period -- allow the authors to address selectivity bias and unobserved firm heterogeneity by applying a generalization of differences-in-differences models combined with propensity score matching methods. This study finds evidence that participation in small and medium enterprise programs is associated with improvements in key variables such as value added, gross production, and wages. Furthermore, the study finds evidence that some of the positive effects can take several years to realize. The results also call for streamlining and greater efficiency in Mexico's small and medium enterprise programs.

Suggested Citation

  • Lopez-Acevedo , Gladys & Tinajero, Monica, 2010. "Mexico : impact evaluation of sme programs using panel firm data," Policy Research Working Paper Series 5186, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5186
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    Citations

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    Cited by:

    1. repec:nea:journl:y:2017i:34:p:59-93 is not listed on IDEAS
    2. Naudé, Wim, 2012. "Entrepreneurship and economic development: Theory, evidence and policy," MERIT Working Papers 027, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Cadot, Olivier & Fernandes, Ana M. & Gourdon, Julien & Mattoo, Aaditya, 2011. "Impact evaluation of trade interventions : paving the way," Policy Research Working Paper Series 5877, The World Bank.
    4. Wim Naudé, 2011. "Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development?," Working Papers 2011/35, Maastricht School of Management.
    5. Corseuil, Carlos Henrique & Moura, Rodrigo Leandro de, 2010. "The effects of tax incentives for small firms on employment levels," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 701, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    6. repec:eee:wdevel:v:97:y:2017:i:c:p:330-348 is not listed on IDEAS
    7. 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.
    8. Simachev, Yuri & Kuzyk, Mikhail & Feygina, Vera, 2014. "Russian policies in support of innovation: elusive quest for efficiency," MPRA Paper 56750, University Library of Munich, Germany.

    More about this item

    Keywords

    ICT Policy and Strategies; Poverty Monitoring&Analysis; Poverty Impact Evaluation; Labor Policies; E-Business;

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