Majandusteaduskonna teadusseminar 14. oktoobril
- Aeg:14.10.15 - 14.10.15
14. oktoobril kell 16.00 toimub ruumis SOC-415 majandusteaduskonna teadusseminar.
Seminar toimub inglise keeles.
Ricardo Vicente, Department of Finance and Economics, TUT (co-author Meelis Kitsing, Ministry of Economic Affairs and Communications, Estonian Business School) will present: "Picking Big Winners and Small Losers: An Evaluation of Estonian Government Grants for Firms"
Abstract: The paper analyzes the impact of grants funded by the structural funds of the European Union and distributed by Enterprise Estonia, a government agency responsible for business support schemes. We demonstrate the impact of grants on the performance of receiving companies in the years 2007-2012 by using propensity score matching. A set of financial, economic, and location variables at the firm level is used to estimate the propensity scores. Data covers all 2,709 receiving companies, and all operative Estonian companies. Fifty two percent of funds were allocated to "investment in technology" grants, which had statistically significant positive effects on performance indicators. Since the number of technology grant recipients was small, the amounts were relatively large, and projects had lower risk in comparison with those funded by other grant types, we argue that the government has picked winners. Funding of riskier projects with higher probability of market failure has been more limited, and grants for research and development as well as for start-up support had statistically significant negative effects on value-added of firms.
karsten dot staehr at ttu dot ee