The effectiveness of investment subsidies: evidence from a regression discontinuity design

Decramer, Stefaan; Vanormelingen, Stijn

doi:10.1007/s11187-016-9749-2

Cited by 46 publications

(28 citation statements)

References 27 publications

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“…Our finding is in contrast with previous findings from the agricultural sector (Ratinger et al, 2013), but it supports findings from the meat processing industry (Spicka et al, 2017). Decramer and Vanormelingen (2016) found that the effect of the subsidies on the growth of the receiving firms was rather limited. Only for the very small firms was there a positive effect on investment, employment, sales, value added and productivity.…”

Section: ]supporting

confidence: 57%

“…Moreover, investment support should also focus on creating new jobs and improving the quality of life. However, output should increase more than labour costs (Decramer and Vanormelingen, 2016). The hypothesis is that there is a positive dynamic effect of investment support on labour productivity.…”

Section: Dynamic Effects Of Public Investment Support In the Food Andmentioning

confidence: 99%

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Dynamic Effects of Public Investment Support in the Food and Beverage Industries

Špička

2018

AOL

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Impact evaluation of public investment is essential for policy makers to evaluate the effectiveness of public resource allocation and for company management from various industries to determine whether to participate in grant programmes. This article aims to use statistical and econometrical methods (such as propensity score matching, average treatment effect on treated, difference-in-difference approach and pooled regression with time lags) to evaluate the impacts of investment support from the Rural Development Programme, national sources and the Operational Programme Enterprise and Innovation on selected key economic indicators. This representative case study of 412 companies from the Czech food and beverage industry during the period from 2007-2015 noted some interesting findings, many of which go against previous findings. The food and beverage industry is an important beneficiary of public investment subsidies. Investment support increases investment activity and the size of supported companies. This investment support could lead to a crowdingout effect, which has been revealed in recent studies. Simultaneously, investment support changes the capital structure of participants towards higher use of bank loans and positively affects long-term profitability. However, there were not any significant, positive effects on the intensity of the use of fixed assets and labour productivity, which has been a key impact indicator for programme evaluations. However, research revealed positive dynamic effects of investment support on improving resource efficiency. KeywordsTreatment effects, impact evaluation, lagged effects, food and beverage industry.

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Section: ]supporting

confidence: 57%

Section: Dynamic Effects Of Public Investment Support In the Food Andmentioning

confidence: 99%

Dynamic Effects of Public Investment Support in the Food and Beverage Industries

Špička

2018

AOL

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“…Entrepreneurship researchers may also employ a difference-in-differences design by assigning treatment and control groups based on a naturally occurring phenomenon, such as a change in public policy (Davidsson and Gordon, 2016). Regression discontinuity designs also compare the effect of an intervention where researchers can distinguish between treatment and control groups based on a naturally occurring cutoff (Decramer and Vanormelingen, 2016).…”

Section: Causal Inference Asmentioning

confidence: 99%

Editorial: Enhancing quantitative theory-testing entrepreneurship research

Anderson

Wennberg

McMullen

2019

Journal of Business Venturing

118

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The purpose of this editorial is to discuss methodological advancements to enhance quantitative theory-testing entrepreneurship research. As the impact of entrepreneurship scholarship accelerates and deepens, our methods must keep pace to continue shaping theory, policy, and practice. Like our sister fields in business, entrepreneurship is coming to terms with the replication and credibility crisis in the social sciences, forcing the field to revisit commonly-held assumptions that limit the promise and prospect of our scholarship. Thus, we provide suggestions for reviewers and editors to identify concerns in empirical work, and to guide authors in improving their analyses and research designs. We hope that our editorial provides useful and actionable guidance for entrepreneurship researchers submitting theory-testing papers to Journal of Business Venturing.

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“…To the extent that the fixed costs represent investments in information acquisition, they have a public good aspect and it is better to incur them only once (Copeland 2008 Decramer and Vanormelingen, 2016). At the national level, the Belgian government operates the Delcredere agency, which guarantees export credit and provides default insurance (for an assessment see Abraham and Dewit, 2000).…”

Section: Theoretical Justificationsmentioning

confidence: 99%

The impact of export promotion on export market entry

Broocks

Biesebroeck

2017

Journal of International Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Editor Jan Smets, Governor of the National Bank of Belgium Terms of use: Documents in Statement of purpose:The purpose of these working papers is to promote the circulation of research results (Research Series) and analytical studies (Documents Series) made within the National Bank of Belgium or presented by external economists in seminars, conferences and conventions organised by the Bank. The aim is therefore to provide a platform for discussion. The opinions expressed are strictly those of the authors and do not necessarily reflect the views of the National Bank of Belgium. Orders AbstractFor small open economies, it is essential that many firms find their way to the export market and most governments provide some form of export promotion assistance. We use detailed firm-level data for Flanders, the largest region in Belgium, to evaluate whether its program raises firms'propensity to start exporting outside the EU single market. We find robust evidence for such an effect by relying on the selection-on-observables assumption which we implement using various estimators. Results remain positive and statistically signifcant, but are smaller in size, when we use two strategies to mitigate self-selection concerns: (i) focus on sub-samples of firms where endogenous selection into treatment is less likely, and (ii) use firms that receive the weakest form of support as controls for firms receiving more extensive support.JEL classification: F13, F14

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The effectiveness of investment subsidies: evidence from a regression discontinuity design

Cited by 46 publications

References 27 publications

Dynamic Effects of Public Investment Support in the Food and Beverage Industries

Dynamic Effects of Public Investment Support in the Food and Beverage Industries

Editorial: Enhancing quantitative theory-testing entrepreneurship research

The impact of export promotion on export market entry

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