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The Impact of Public Grants on Firm-Level Productivity: Findings from the Czech Food Industry

Authors
  • Dvouletý, Ondřej
  • Blažková, Ivana
Publication Date
Jan 21, 2019
Source
MDPI
Keywords
Language
English
License
Green
External links

Abstract

production efficiency, labour productivity and total factor productivity (TFP). The obtained findings showed that investment subsidy had a positive impact on labour productivity of supported firms. However, the effects on TFP were negative. The impact on production efficiency indicator was proven to be inconclusive. It follows from the results that the productivity of subsidised firms did not improve through an internal increase in efficiency (efficiency of the use of inputs), which indicates no significant technological change. The subsidy decision-making processes should be more careful and transparent to ensure allocating resources only to the projects with growth potential.

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