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Winners and losers in industrial policy 2.0

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  • Mohamed Ali Marouani
  • Michelle Marshalian

Abstract

Large-scale business subsidies tied to national industrial development promotion programmes are notoriously difficult to study and are often inseparable from the political economy of large government programmes. We use the Tunisian national firm registry panel database, data on treated firms, and a perceptions survey administered by the National Research Institute to measure the impact of Tunisia's Industrial Upgrading Program. Using inverse propensity score re-weighted differences-in-differences regressions, we find that small treated firms hire more and higher-skilled labour.

Suggested Citation

  • Mohamed Ali Marouani & Michelle Marshalian, 2020. "Winners and losers in industrial policy 2.0," WIDER Working Paper Series wp-2020-21, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-21
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    References listed on IDEAS

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    Keywords

    Firm subsidies; Fiscal policy; Industrial policy; Firm size; Impact analysis; Labour;
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