engleski

Getting ready for EU Single Market: the effect of export-oriented grant schemes on firm performance

In this paper we analyze the impact of an export- oriented grant scheme created in anticipation of accession of a country to the European Union. The scheme aimed to support activities for the introduction of new or existing products to foreign markets and technology development. We find this new policy exerted a positive effect on firm export value, total sales, profits, and value added. The policy design differentiates two types of supported activities. Technological development grants have an additionality effect on exports by increasing significantly capital and commercialization grants by increasing intermediate inputs. We have no evidence for an effect on employment and only a slight effect on total factor productivity when technological development grants were received. Overall grants targeted at technological development had more relevant economic effects than did grants for commercialization activities. A cost-benefit analysis suggests that the benefits created in value added are 139.5% of the grant scheme cost.

export-oriented grants ; policy evaluation ; difference in differences matching estimator ; EU accession

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