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Evaluating different types of enterprise support programs using panel firm data: evidence from the Mexican manufacturing sector

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  • López-Acevedo, Gladys
  • Tinajero-Bravo, Mónica

Abstract

This paper uses a ten-year panel of firm-level data (1994–2005) to evaluate different type of enterprise support programs in Mexico. The applied methodology is a fixed effect model that addresses selectivity bias from observed and unobserved firm heterogeneity. The analysis finds evidence that participation in some Business Development Services (BDS), specifically environmental certification services, and Research and Development (R&D) support programs is associated with improvements on outcomes such as the value added per worker, employment, and exports. The magnitude and statistical significance of the estimated effects varies across programs, with estimated effects of R&D programs being larger and more precisely estimated. Further, the paper finds evidence that some of the positive effects of these programs can take several years to realize.
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Suggested Citation

  • López-Acevedo, Gladys & Tinajero-Bravo, Mónica, 2013. "Evaluating different types of enterprise support programs using panel firm data: evidence from the Mexican manufacturing sector," LSE Research Online Documents on Economics 123251, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:123251
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    References listed on IDEAS

    as
    1. Aerts, Kris & Czarnitzki, Dirk, 2004. "Using Innovation Survey Data to Evaluate R&D Policy: The Case of Belgium," ZEW Discussion Papers 04-55, ZEW - Leibniz Centre for European Economic Research.
    2. Jose Miguel Benavente & Gustavo Crespi, 2003. "The Impact of an Associative Strategy (the PROFO Program) on Small and Medium Enterprises in Chile," SPRU Working Paper Series 88, SPRU - Science Policy Research Unit, University of Sussex Business School.
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    More about this item

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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