Manaresi, Francesco, Palma, Alessandro, Salvatici, Luca and Scrutinio, Vincenzo (2022) Managerial input and firm performance. Evidence from a policy experiment. CEP Discussion Papers (1871). London School of Economics and Political Science. Centre for Economic Performance, London, UK.
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Abstract
We study the effects of a subsidy program designed to boost small and medium enterprises' export capabilities through a Temporary Export Manager (TEM), hired for at least 6 months to provide consulting on how to reach foreign markets. Firms applied online for the subsidy and vouchers to hire TEMs were allocated on a first-come, first-served basis. We use a difference-in-differences design to compare the performances of firms that nearly got the subsidy with those that barely did not. Eligible firms experienced a large increase in revenues, return on equity, profits and value added per employee, accompanied by a significant growth in export in extra-EU markets four years after receiving the subsidy. The gains were larger for the least productive and smaller firms and effects were heterogeneous across TEM providers. TEMs were also effective in stimulating 'good' labor demand: besides intensifying exports, firms increased their workforce by nearly 13%, mainly in full-time and permanent employees. Results of a survey conducted on TEM providers confirm our econometric results and revealed that the benefits of voucher extended beyond the initial subsidized service.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | https://cep.lse.ac.uk/_new/publications/discussion... |
| Additional Information: | © 2022 The Authors |
| Divisions: | Centre for Economic Performance |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HB Economic Theory H Social Sciences > HG Finance |
| JEL classification: | L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L20 - General O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General F - International Economics > F2 - International Factor Movements and International Business > F20 - General |
| Date Deposited: | 23 Jan 2023 16:42 |
| Last Modified: | 15 Sep 2023 23:58 |
| URI: | http://eprints.lse.ac.uk/id/eprint/117989 |
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