Industrial policy evaluation in the presence of spillovers
Cerqua, A. and Pellegrini, G. 2017. Industrial policy evaluation in the presence of spillovers. Small Business Economics. 49 (3), pp. 671-686. https://doi.org/10.1007/s11187-017-9855-9
| Title | Industrial policy evaluation in the presence of spillovers |
|---|---|
| Type | Journal article |
| Authors | Cerqua, A. and Pellegrini, G. |
| Abstract | The shortage of studies on spatial spillovers of capital subsidy policies is rather surprising, considering that such policies are usually designed to generate spatial externalities. We propose a new framework that allows positive agglomeration effects to be contrasted with the negative cross-sectional substitution and the crowding-out effect. The global evaluation of the ATT and the spillover parameters shifts the spotlight from the policy effect on subsidised firms to the global effect of capital subsidy policies on the targeted territory. The empirical evaluation of a policy in Italy mainly directed towards small- and medium-sized firms shows that the impact on investments, turnover and employment is positive and large, but is negative on TFP. However, the employment growth is partially determined to the detriment of the untreated firms. |
| Keywords | Spillovers, Policy evaluation, Small and medium-sized firms, Public subsidies |
| Journal | Small Business Economics |
| Journal citation | 49 (3), pp. 671-686 |
| ISSN | 0921-898X |
| Year | 2017 |
| Publisher | Springer |
| Accepted author manuscript | License CC BY 4.0 File Access Level Open (open metadata and files) |
| Publisher's version | License CC BY 4.0 File Access Level Open (open metadata and files) |
| Digital Object Identifier (DOI) | https://doi.org/10.1007/s11187-017-9855-9 |
| Web address (URL) | https://link.springer.com/article/10.1007%2Fs11187-017-9855-9 |
| Publication dates | |
| Published online | 12 Apr 2017 |
| Published | 12 Apr 2017 |
| Published in print | Oct 2017 |
| Supplemental file | License CC BY 4.0 File Access Level Open (open metadata and files) |
| License | CC BY 4.0 |