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Capital Subsidies and their Impact on Total Factor Productivity: Firm‐Level Evidence from Northern Ireland *
Author(s) -
Harris Richard,
Trainor Mary
Publication year - 2005
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.0022-4146.2005.00364.x
Subject(s) - productivity , subsidy , counterfactual thinking , total factor productivity , northern ireland , government (linguistics) , business , capital (architecture) , economics , agricultural economics , economic growth , geography , market economy , archaeology , philosophy , ethnology , linguistics , epistemology , history
. Manufacturing industry in Northern Ireland receives extensive financial support from government with the objective of improving the economic performance of the plants that are directly assisted. Many studies have tried to assess the impact of such assistance, but without the counterfactual evidence it is difficult to ascertain whether or not such support does improve performance. The aim of this paper is to use a unique matched data set to establish if such assistance has made a difference to total factor productivity in Northern Ireland manufacturing plants.