Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/316269 
Year of Publication: 
2025
Series/Report no.: 
DIW Discussion Papers No. 2116
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
The Covid-19 pandemic caused a global economic crisis, leading governments to provide substantial State Aid to support firms. This paper examines the effectiveness of Covid-related financial support in Spain and Italy, focusing on its impact on firm recovery. Using a difference-in-differences (DiD) approach combined with propensity score weighting, it compares outcomes of similar firms receiving aid to those without. The results show significant benefits for micro-firms, including mitigated turnover declines and increased investments in both tangible and intangible assets. The findings highlight the critical role of government support in business survival and recovery, especially for SMEs, during the pandemic.
Subjects: 
State Aid
Aid effectiveness
Temporary Framework
Covid
Firm growth
Investment
Difference-in-differences
JEL: 
D04
D22
L25
L52
P43
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.