Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30260
Authors: 
Girma, Sourafel
Görg, Holger
Hanley, Aoife
Strobl, Eric
Year of Publication: 
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

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