Can Firm Subsidies Spread Growth?
Elodie Andrieu and
John Morrow
Additional contact information
Elodie Andrieu: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
John Morrow: QMUL - Queen Mary University of London
PSE Working Papers from HAL
Abstract:
How do firms diffuse resources and do they spillover outside headquarter intensive areas? We show R&D subsidies induce French firms to hire new workers, often in new establishments and commuting zones. Using subsidy induced labor demand shocks and past employment patterns, we estimate a within industry spillover elasticity of .26 to non-subsidy firms, rising to .35 for openings outside of headquarter areas. Spillovers are also significant across firm branches and for firms. While subsidies are nominally awarded to headquarters, firms expand to distribute spillovers more broadly.
Keywords: Multi-establishment Firms; Subsidies; Directed Growth; Spillovers (search for similar items in EconPapers)
Date: 2024-10
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-04721319v1
References: Add references at CitEc
Citations:
Downloads: (external link)
https://shs.hal.science/halshs-04721319v1/document (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:psewpa:halshs-04721319
Access Statistics for this paper
More papers in PSE Working Papers from HAL
Bibliographic data for series maintained by CCSD ().