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Regional Selective Assistance in Scotland: Does it make a difference to plant productivity?

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  • John Moffat

Abstract

This paper examines whether receipt of a Regional Selective Assistance (RSA) grant has a causal impact on plant total factor productivity (TFP). To tackle the problem of self-selection into the treatment group, propensity score matching is employed. In order to control for the endogeneity of other variables in the model, estimations are performed using the system GMM estimator. The results show that for low technology manufacturing, receipt of an RSA grant leads to a fall in TFP.

Suggested Citation

  • John Moffat, 2014. "Regional Selective Assistance in Scotland: Does it make a difference to plant productivity?," Urban Studies, Urban Studies Journal Limited, vol. 51(12), pages 2555-2571, September.
    • Handle: RePEc:sae:urbstu:v:51:y:2014:i:12:p:2555-2571
    DOI: 10.1177/0042098013510568
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    Cited by:

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    3. Nie, Changfei & Ye, Susu & Feng, Yuan, 2024. "Place-based policy and urban green technology innovation: Evidence from the revitalization of old revolutionary base areas in China," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1257-1272.
    4. Bessonova, Evguenia, 2023. "Firms’ efficiency, exits and government procurement contracts," European Journal of Political Economy, Elsevier, vol. 76(C).
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    6. Bernini, Cristina & Cerqua, Augusto & Pellegrini, Guido, 2017. "Public subsidies, TFP and efficiency: A tale of complex relationships," Research Policy, Elsevier, vol. 46(4), pages 751-767.
    7. Li, Mingyang & Jin, Man & Kumbhakar, Subal C., 2022. "Do subsidies increase firm productivity? Evidence from Chinese manufacturing enterprises," European Journal of Operational Research, Elsevier, vol. 303(1), pages 388-400.
    8. Dongmei Wang & Yangyang Sun, 2022. "The effect of different government subsidies on total-factor productivity: Evidence from private listed manufacturing enterprises in China," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-19, January.
    9. Ondřej Dvouletý & Ivana Blažková, 2019. "The Impact of Public Grants on Firm-Level Productivity: Findings from the Czech Food Industry," Sustainability, MDPI, vol. 11(2), pages 1-24, January.
    10. Kölling Arnd, 2016. "Developing Eastern Germany: The Effects of Economics Promotion in the Eastern German States after Reunification," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(2), pages 275-295, March.

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