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Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden

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DOI: 10.4236/ti.2010.13027    4,484 Downloads   8,160 Views   Citations

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.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

M. Ankarhem, S. Daunfeldt, S. Quoreshi and N. Rudholm, "Do Regional Investment Grants Improve Firm Performance? Evidence from Sweden," Technology and Investment, Vol. 1 No. 3, 2010, pp. 221-227. doi: 10.4236/ti.2010.13027.

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