Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant Level Data
نویسندگان
چکیده
Do Government Subsidies Stimulate Training Expenditure? Microeconometric Evidence from Plant Level Data This paper examines whether financial assistance provided by government induces firms to spend more of their own funds on training expenditures, using plant level data for the Republic of Ireland. We pay particular attention to the potential problems in such an evaluation study, namely selectivity and endogeneity, by first identifying a valid counterfactual for grant receiving plants via a matching estimator and then employing a difference-indifferences technique on this matched sample. Our results show that there are differences in causal effects between domestic and foreign owned plants. For the former we find clear evidence that grant receipt stimulates private expenditure, while there are no statistically significant effects for foreign-owned plants based in Ireland. JEL Classification: J24, H25
منابع مشابه
Do government subsidies stimulate training expenditure ?
This paper examines whether financial assistance provided by government induces firms to spend more of their own funds on training expenditures, using plant level data for the Republic of Ireland. We pay particular attention to the potential problems in such an evaluation study, namely selectivity and endogeneity, by first identifying a valid counterfactual for grant receiving plants via a matc...
متن کاملGlobalisation and Labour Markets Research Paper 2005 / 13 Do government subsidies stimulate training expenditure ?
This paper examines whether financial assistance provided by government induces firms to spend more of their own funds on training expenditures, using plant level data for the Republic of Ireland. We pay particular attention to the potential problems in such an evaluation study, namely selectivity and endogeneity, by first identifying a valid counterfactual for grant receiving plants via a matc...
متن کاملGovernment Size and Social Capital in Developing Countries; New Empirical Evidence
Social capital is one of the most important subjects in development economics. It has a crucial role in development process in developing countries. To the best of our knowledge, there is no study about the importance of government size in social capital. Therefore, the purpose of this paper is considering the relationship between government size and social capital in 109 developing countries d...
متن کاملPublic Subsidies to Business R&d. an Industry-level Analysis
Economic literature on research and development has reached a firm consensus that the level of private investment in R&D activities is likely to be too low from a social point of view. A number of market failures such as limited appropiability, financial market failure and external benefits to the production of knowledge, have created a case in favour of public subsidies, and other policy measu...
متن کاملThe impact of globalization on the composition of government expenditures: Evidence from panel data
According to the disciplining hypothesis, globalization restrains governments by inducing increased budgetary pressure. As a consequence, governments shift their expenditures in favour of transfers and subsidies and away from capital expenditures. This expenditure shift is potentially enhanced by citizens’ preferences to be compensated for the risks of globalization (“compensation hypothesis”)....
متن کامل