IDEAS home Printed from https://ideas.repec.org/a/taf/jbemgt/v9y2008i3p167-180.html
   My bibliography  Save this article

Evaluating the effect of state aid to business by multicriteria methods

Author

Listed:
  • Romualdas Ginevičius
  • Valentinas Podvezko
  • Šarūnas Bruzge

Abstract

One of the forms of state intervention in market development is state aid (subsidies) to private sector enterprises. Over the period of 2004--2006, a great part of the EU aid was granted to business in Lithuania through the EU structural funds. State aid is a complicated phenomenon. It may have several aims, with none of them being dominant. The effects of this aid may also be varied and hardly described by a single criterion or indicator. Therefore, multiple criteria evaluation methods can be used to compare the aid to various businesses and to determine its effect on their development objectively. The analysis of state subsidies to enterprises based on these methods allowed us to state that the aid had the greatest effect on the development of projects in the areas of production, research, experiments and education. The most influencing factor is aid intensity (the more intensive the aid, the greater the effect), while the best ratios of investments to the effect obtained was found in the area of educational projects, followed by research, experimental and production projects. The aid to enterprises providing services was the least effective. The results obtained in multicriteria evaluation of state aid to business show that these methods are well suited to the analysis of this phenomenon, providing an objective view of the picture.

Suggested Citation

  • Romualdas Ginevičius & Valentinas Podvezko & Šarūnas Bruzge, 2008. "Evaluating the effect of state aid to business by multicriteria methods," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 9(3), pages 167-180, August.
    • Handle: RePEc:taf:jbemgt:v:9:y:2008:i:3:p:167-180
    DOI: 10.3846/1611-1699.2008.9.167-180
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3846/1611-1699.2008.9.167-180
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.3846/1611-1699.2008.9.167-180?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jurgita Baranauskiene & Vilija Alekneviciene, 2019. "Comprehensive Measurement of Social Benefits Generated by Public Investment Projects," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 15(4), pages 195-210.
    2. Simona Mateut, 2018. "Subsidies, financial constraints and firm innovative activities in emerging economies," Small Business Economics, Springer, vol. 50(1), pages 131-162, January.
    3. Agnė Šimelytė & Jūratė Antanavičienė, 2013. "Economic development and its influence on state capital structure," Post-Print hal-01694339, HAL.
    4. Orhan Emre Elma & Željko Stević & Mahmut Baydaş, 2024. "An Alternative Sensitivity Analysis for the Evaluation of MCDA Applications: The Significance of Brand Value in the Comparative Financial Performance Analysis of BIST High-End Companies," Mathematics, MDPI, vol. 12(4), pages 1-24, February.
    5. Agnė Šimelytė & Jūratė Antanavičienė, 2013. "Economic development and its influence on state capital structure," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 1(1), pages 1-9, September.
    6. Špetlík Václav & Čadil Jan, 2023. "When Daces Bite Deeper than Sharks – Does the SMEs Public Subsidy Dose Matter?," Review of Economic Perspectives, Sciendo, vol. 23(4), pages 233-250, December.
    7. Agnieszka Komor, 2020. "The Economic Dimension of Space," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 429-452.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Banai, Reza, 2010. "Evaluation of land use-transportation systems with the Analytic Network Process," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 3(1), pages 85-112.
    2. Fatih Yiğit & Şakir Esnaf, 2021. "A new Fuzzy C-Means and AHP-based three-phased approach for multiple criteria ABC inventory classification," Journal of Intelligent Manufacturing, Springer, vol. 32(6), pages 1517-1528, August.
    3. Rachele Corticelli & Margherita Pazzini & Cecilia Mazzoli & Claudio Lantieri & Annarita Ferrante & Valeria Vignali, 2022. "Urban Regeneration and Soft Mobility: The Case Study of the Rimini Canal Port in Italy," Sustainability, MDPI, vol. 14(21), pages 1-27, November.
    4. Lin, Sheng-Hau & Zhao, Xiaofeng & Wu, Jiuxing & Liang, Fachao & Li, Jia-Hsuan & Lai, Ren-Ji & Hsieh, Jing-Chzi & Tzeng, Gwo-Hshiung, 2021. "An evaluation framework for developing green infrastructure by using a new hybrid multiple attribute decision-making model for promoting environmental sustainability," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
    5. Pishchulov, Grigory & Trautrims, Alexander & Chesney, Thomas & Gold, Stefan & Schwab, Leila, 2019. "The Voting Analytic Hierarchy Process revisited: A revised method with application to sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 211(C), pages 166-179.
    6. Seung-Jin Han & Won-Jae Lee & So-Hee Kim & Sang-Hoon Yoon & Hyunwoong Pyun, 2022. "Assessing Expected Long-term Benefits for the Olympic Games: Delphi-AHP Approach from Korean Olympic Experts," SAGE Open, , vol. 12(4), pages 21582440221, December.
    7. Denys Yemshanov & Frank H. Koch & Yakov Ben‐Haim & Marla Downing & Frank Sapio & Marty Siltanen, 2013. "A New Multicriteria Risk Mapping Approach Based on a Multiattribute Frontier Concept," Risk Analysis, John Wiley & Sons, vol. 33(9), pages 1694-1709, September.
    8. Mangla, Sachin Kumar & Srivastava, Praveen Ranjan & Eachempati, Prajwal & Tiwari, Aviral Kumar, 2024. "Exploring the impact of key performance factors on energy markets: From energy risk management perspectives," Energy Economics, Elsevier, vol. 131(C).
    9. Seyed Rakhshan & Ali Kamyad & Sohrab Effati, 2015. "Ranking decision-making units by using combination of analytical hierarchical process method and Tchebycheff model in data envelopment analysis," Annals of Operations Research, Springer, vol. 226(1), pages 505-525, March.
    10. V. Srinivasan & G. Shainesh & Anand K. Sharma, 2015. "An approach to prioritize customer-based, cost-effective service enhancements," The Service Industries Journal, Taylor & Francis Journals, vol. 35(14), pages 747-762, October.
    11. Mónica García-Melón & Blanca Pérez-Gladish & Tomás Gómez-Navarro & Paz Mendez-Rodriguez, 2016. "Assessing mutual funds’ corporate social responsibility: a multistakeholder-AHP based methodology," Annals of Operations Research, Springer, vol. 244(2), pages 475-503, September.
    12. Jitendar Kumar Khatri & Bhimaraya Metri, 2016. "SWOT-AHP Approach for Sustainable Manufacturing Strategy Selection: A Case of Indian SME," Global Business Review, International Management Institute, vol. 17(5), pages 1211-1226, October.
    13. Vlachokostas, Ch. & Michailidou, A.V. & Achillas, Ch., 2021. "Multi-Criteria Decision Analysis towards promoting Waste-to-Energy Management Strategies: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    14. Cui, Ye & E, Hanyu & Pedrycz, Witold & Fayek, Aminah Robinson, 2022. "A granular multicriteria group decision making for renewable energy planning problems," Renewable Energy, Elsevier, vol. 199(C), pages 1047-1059.
    15. Jha, Madan K. & Chowdary, V.M. & Kulkarni, Y. & Mal, B.C., 2014. "Rainwater harvesting planning using geospatial techniques and multicriteria decision analysis," Resources, Conservation & Recycling, Elsevier, vol. 83(C), pages 96-111.
    16. Om Prakash Mishra & Mahesh Chand & Krishan Kumar & Prashant Mishra, 2023. "Investigating applicability of green supply chain management in manufacturing sectors," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(4), pages 1183-1196, August.
    17. David Han-Min Wang & Quang Linh Huynh, 2013. "Mediating Role of Knowledge Management in Effect of Management Accounting Practices on Firm Performance," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(3), pages 1-10, June.
    18. Luis Pérez-Domínguez & Luis Alberto Rodríguez-Picón & Alejandro Alvarado-Iniesta & David Luviano Cruz & Zeshui Xu, 2018. "MOORA under Pythagorean Fuzzy Set for Multiple Criteria Decision Making," Complexity, Hindawi, vol. 2018, pages 1-10, April.
    19. Neha Arora & Naresh Kumar, 2021. "Does Financial Inclusion Promote Human Development? Evidence from India," Jindal Journal of Business Research, , vol. 10(2), pages 163-184, December.
    20. Hossain, Mohammad Khalid & Meng, Qingmin, 2020. "A fine-scale spatial analytics of the assessment and mapping of buildings and population at different risk levels of urban flood," Land Use Policy, Elsevier, vol. 99(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jbemgt:v:9:y:2008:i:3:p:167-180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TBEM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.