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The role of financial support in SME and economic development in Estonia

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  • Hartsenko, Jelena
  • Sauga, Ako

Abstract

This paper provides evidence on the links between efficiency and the governmental support for small-medium sized Estonian firms. The analysis is based on the Cobb-Douglas production function using micro level data. To analyse the impact of the financial support we applied a panel data framework. The estimation results confirm our main hypothesis that financial assistance increases productivity of Estonian SMEs, thus contributing the economic development.

Suggested Citation

  • Hartsenko, Jelena & Sauga, Ako, 2013. "The role of financial support in SME and economic development in Estonia," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 9(2), pages 1-13, July.
    • Handle: RePEc:ags:pdcbeh:245066
    DOI: 10.22004/ag.econ.245066
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    References listed on IDEAS

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    1. Aminata SISSOKO, 2011. "R&D Subsidies And Firm-Level Productivity: Evidence From France," LIDAM Discussion Papers IRES 2011002, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 24 Oct 2013.
    2. Mitchell A. Petersen, 2009. "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches," The Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 435-480, January.
    3. Girma, Sourafel & Görg, Holger & Strobl, Eric, 2003. "Government Grants, Plant Survival and Employment Growth: A Micro-Econometric Analysis," IZA Discussion Papers 838, Institute of Labor Economics (IZA).
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    Cited by:

    1. Ondřej Dvouletý & Stjepan Srhoj & Smaranda Pantea, 2021. "Public SME grants and firm performance in European Union: A systematic review of empirical evidence," Small Business Economics, Springer, vol. 57(1), pages 243-263, June.
    2. Kállay, László & Takács, Tibor, 2023. "The impact of public subsidies on investment and growth: Policy about evaluation, selection and monitoring," Journal of Policy Modeling, Elsevier, vol. 45(5), pages 895-909.
    3. Jelena Hartsenko & Ako Sauga, 2013. "The role of financial support in SME and economic development in Estonia," Business and Economic Horizons (BEH), Prague Development Center, vol. 9(2), pages 10-22, July.
    4. Ondřej Dvouletý, 2017. "Effects of Soft Loans and Credit Guarantees on Performance of Supported Firms: Evidence from the Czech Public Programme START," Sustainability, MDPI, vol. 9(12), pages 1-17, December.

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