Do Regional Investment Grants Improve Firm Performance? - Evidence from Sweden

Mattias Ankarhem, Sven-Olov Daunfeldt, Shahiduzzaman Quoreshi and Niklas Rudholm ()
Additional contact information
Mattias Ankarhem: Ministry of Finance, Postal: SE - 103 33 Stockholm, Sweden
Niklas Rudholm: The Swedish Retail Institute, Postal: SE-103 29 Stockholm, Sweden, and Dalarna University, Department of Economics, SE-781 88 Borlänge, Sweden

No 24, HUI Working Papers from HUI Research

Abstract: The effect of Swedish regional investment grants during 1990-1999 on firm performance, in terms of returns on equity and number of employees, were studied using a propensity-score matching-method to control for sample selection. Firms that received grants did not perform better in terms of returns on equity when compared to matched firms in the control group. In most years, recipient firms also did not hire more employees. The results thus cast doubt on the use of regional investment grants as a general policy instrument to improve firm performance.

Keywords: Economic efficiency; propensity score matching; sample selection; logit regression; panel data (search for similar items in EconPapers)
JEL-codes: R11 R58 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2009-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published as Ankarhem, Mattias, Sven-Olov Daunfeldt, Shahiduzzaman Quoreshi and Niklas Rudholm, 'Do Regional Investment Grants Improve Firm Performance? - Evidence from Sweden' in Technology and Investment, 2010, pages 7.

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Working Paper: Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden (2009)
Working Paper: Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden (2009)
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