全球智库信息集成服务系统(G2TT): DP8818 The causal effects of an industrial policy

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP8818
	DP8818 The causal effects of an industrial policy
	John Van Reenen; Henry Overman; Chiara Criscuolo; Ralf Martin
发表日期	2012-02-01
出版年	2012
语种	英语
摘要	Business support policies designed to raise productivity and employment are common worldwide, but rigorous micro-econometric evaluation of their causal effects is rare. We exploit multiple changes in the area-specific eligibility criteria for a major program to support manufacturing jobs ('Regional Selective Assistance'). Area eligibility is governed by pan-European state aid rules which change every seven years and we use these rule changes to construct instrumental variables for program participation. We match two decades of UK panel data on the population of firms to all program participants. IV estimates find positive program treatment effect on employment, investment and net entry but not on TFP. OLS underestimates program effects because the policy targets underperforming plants and areas. The treatment effect is confined to smaller firms with no effect for larger firms (e.g. over 150 employees). We also find the policy raises area level manufacturing employment mainly through significantly reducing unemployment. The positive program effect is not due to substitution between plants in the same area or between eligible and ineligible areas nearby. We estimate that 'cost per job' of the program was only $6,300 suggesting that in some respects investment subsidies can be cost effective.
主题	International Trade and Regional Economics
关键词	Employment Industrial policy investment Productivity Regional policy
URL	https://cepr.org/publications/dp8818
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/537654
推荐引用方式 GB/T 7714	John Van Reenen,Henry Overman,Chiara Criscuolo,et al. DP8818 The causal effects of an industrial policy. 2012.