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The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economies

Giorgio Barba Navaretti (), Enrico Santarelli () and Marco Vivarelli ()

No 144, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: This paper analyses the impact of subsidies for the promotion of Italian joint ventures (JVs) aimed at LDC and transition economies. The empirical analysis is carried out on a unique dataset of 172 JVs interviewed during 1998 by means of a closed-answer qualitative-quantitative questionnaire. The main finding of the study is that, although there is a significant deadweight component in incentive policy, the subsidised firms are significantly more likely to grow. Moreover, the JVs comprising new firms (which need to grow to survive) also have a higher employment performance than average, as do the (labour intensive) JVs motivated by the search for lower labour costs, and the JVs in east European countries.

Pages: 15
Date: 2000-12
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http://docs.dises.univpm.it/web/quaderni/pdf/144.pdf First version, 2000 (application/pdf)

Related works:
Journal Article: The role of subsidies in promoting Italian joint ventures in least developed and transition economies (2002) Downloads
Working Paper: The Role of Subsidies in Promoting Italian Joint Ventures in Least Developed and Transition Economics (2000) Downloads
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