SSE/EFI Working Paper Series in Economics and Finance
No 283:
Characteristics of Government Supported Firms
Fredrik Bergström
Abstract: Governments all over the world grant different types of
subsidies to firms which are said to have a lack-of-capital problem.
However, it is unclear if governments have the information and motivation
to target firms which have problems to finance profitable project via the
private capital markets. Based on hypotheses derived from interest group
theory, this paper compares (econometrically) characteristics of Swedish
firms targeted for selective regional policy supports with randomly chosen
non-supported firms. The results give some support for an interest group
interpretation of the allocation of subsidies.
Keywords: Allocation of subsidies; regional policy; industrial policy; interest group theories; (follow links to similar papers)
JEL-Codes: H20; H81; L52; L98; R58; (follow links to similar papers)
27 pages, November 23, 1998
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