The effect of government grants on plant level productivity

✍ Scribed by Sourafel Girma; Holger Görg; Eric Strobl

• Book ID: 116421541
• Publisher: Elsevier Science
• Year: 2007
• Tongue: English
• Weight: 113 KB
• Volume: 94
• Category: Article
• ISSN: 0165-1765
• DOI: 10.1016/j.econlet.2006.09.003

✦ Synopsis

We investigate whether government subsidies stimulate productivity growth, using a unique plant level data set from Ireland. We find that only grants that support productivity enhancing activities increase total factor productivity. Financially constrained plants benefit most from such grants.