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http://hdl.handle.net/10419/30260
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| Title: | | The effect of grant receipt on start-up size: Evidence from plant level data  |
| Authors: | | Girma, Sourafel Görg, Holger Hanley, Aoife Strobl, Eric |
| Issue Date: | | 2010 |
| Series/Report no.: | | Kiel working paper 1607 |
| Abstract: | | In this paper we use plant level data on the start-up size of new plant entries and detailed information on the grants received by such plants in order to investigate whether grant receipt encourages plants to start-up with more employment than without support. The data relate to manufacturing plants in the Republic of Ireland, where industrial policy has a long history of using discretionary grants to encourage employment growth. We use a matching procedure to deal with the issue of selectivity into grant receipt, and a quantile regression estimator to allow for different effects of grants on plants depending on their position in the start-up size distribution. Our results provide evidence that grants do indeed encourage plants to start-up larger. We also find that this effect is generally higher for foreign than for domestic plants, and that it differs for plants at different quantiles of the start-up size distribution. |
| Subjects: | | Grants subsidies entry start-up size |
| JEL: | | H2 L2 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Economists Online Kieler Arbeitspapiere, IfW
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