Postdisaster Subsidies for Small and Medium Firms: Insights for Effective Targeting

Yuzuka Kashiwagi ()
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Yuzuka Kashiwagi: Waseda University

No 597, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This paper examines the effect of capital subsidies after great disasters on the recovery of small and medium-sized enterprises (SMEs) using propensity score matching estimations. The estimates show that capital subsidies were effective for the recovery of the performance of SMEs in the retail sector. However, in manufacturing and other service sectors, it finds no significant difference between the recovery of SMEs with and without the subsidy. Utilizing firm-level supply chain data, it further explores the mechanism behind the heterogeneity across sectors. The results suggest that the heterogeneity comes from variations in the degree of private support across sectors rather than variations in supply chain disruption.

Keywords: disasters; enterprise recovery; microeconomic impact of aid; supply chains (search for similar items in EconPapers)
JEL-codes: L10 Q54 R10 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2019-10-29
New Economics Papers: this item is included in nep-ent and nep-sbm
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0597

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