Wer wird subventioniert? Subventionen in deutschen Industrieunternehmen 1999 bis 2006

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Using newly available representative longitudinal data for German manufacturing enterprises over the period 1999 to 2006 this study presents the first comprehensive empirical evidence on subsidized and non-subsidized firms in East and West Germany. The share of subsidized firms in all firms was considerably larger in East Germany than inWest Germany in every year. In both parts of Germany many firms with subsidies receive only a small amount per employee, while only some firms receive large amounts. Subsidized and non-subsidized firms differ with regard to size, productivity, human capital intensity, profitability and research and development intensity. It is shown that subsidized firms had a higher intensity of research and development before receiving subsidies. We find no evidence for a positive causal effect of subsidies on any dimension of firm performance.
Translated title of the contributionWho is subsidized?: Subsidies in German industrial enterprises 1999-2006
Original languageGerman
JournalPerspektiven der Wirtschaftspolitik
Volume11
Issue number1
Pages (from-to)47-74
Number of pages28
ISSN1465-6493
DOIs
Publication statusPublished - 02.2010

    Research areas

  • Economics - firm size, human capital, industrial enterprise, industrial investment, industrial performance, manufacturing, productivity, profitability, research and development, subsidy system