| By: |
Gadd, Håkan (Swedish Institute for Growth Policy Studies (ITPS));
Hansson, Gustav (Swedish Insitute for Growth Policy Studies (ITPS));
Månsson, Jonas (Centre for Labour Market Policy Research (CAFO)) |
| Abstract: |
In this paper, we investigate if firms who received the Regional Development
Grant are performing better than firms that did not receive the subsidy. Using
data on Swedish stock companies, we firstly estimate a multilevel logit model
of the probability of receiving the subsidy. The multilevel approach enables
us to adequately take into account the regional context. Secondly, we use
propensity score matching to assess the successfulness of the subsidy. The
results show that firm characteristics and regional context matters for the
probability of receiving the subsidy. Subsidized firms increased their firm
size compared to non-subsidized firms’, however; we find no evidence that the
subsidized firms have any higher profitability. |
| Keywords: |
Subsidy; Policy evaluation; Firm profitability; Employment growth; Regional development; Multilevel; Propensity score matching |
| JEL: |
C01 E20 H32 O18 R11 |
| Date: |
2008–07–20 |
| URL: |
http://d.repec.org/n?u=RePEc:hhs:vxcafo:2009_003&r=dcm |