Can SME Policies Improve Firm Performance? Evidence from an Impact Evaluation in Argentina

35 Pages Posted: 23 May 2011

See all articles by Victoria Castillo

Victoria Castillo

affiliation not provided to SSRN

Alessandro Maffioli

Inter-American Development Bank; University of Insubria

Ana P. Monsalvo

affiliation not provided to SSRN

Sofía Rojo

affiliation not provided to SSRN

Rodolfo Stucchi

InterAmerican Development Bank

Date Written: December 1, 2010

Abstract

This paper evaluates the impact of the Argentine SME support program PRE on employment, real wages, and exports. The program aimed at increasing the competitiveness of SMEs by co-financing up to fifty percent of expenditures in professional services and technical assistance. We use a unique panel dataset constructed with administrative records. We combine Propensity Score Matching and Difference in Differences methods to control for selection biases in the estimations. We find a positive and quantitatively important impact of the program on employment and a positive although smaller impact on real wages and the probability of exporting. We also find that the effect of the program on wages and the probability of exporting take place one year after beneficiaries receive the program. The effect of the program on employment takes place one, two, and even, three years after beneficiaries receive the program.

Keywords: Public Policy Evaluation, SMEs, Employment, Wages, Exports, Argentina, Difference in Differences, Propensity Score Matching

JEL Classification: C23, H43, L25, O12, O54

Suggested Citation

Castillo, Victoria and Maffioli, Alessandro and Monsalvo, Ana P. and Rojo, Sofía and Stucchi, Rodolfo, Can SME Policies Improve Firm Performance? Evidence from an Impact Evaluation in Argentina (December 1, 2010). IDB OVE Working Paper No. 06/10, Available at SSRN: https://ssrn.com/abstract=1848984 or http://dx.doi.org/10.2139/ssrn.1848984

Victoria Castillo

affiliation not provided to SSRN ( email )

Alessandro Maffioli

Inter-American Development Bank ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

University of Insubria ( email )

Via Ravasi 2
Varese, 21100
Italy

Ana P. Monsalvo

affiliation not provided to SSRN ( email )

Sofía Rojo

affiliation not provided to SSRN ( email )

Rodolfo Stucchi (Contact Author)

InterAmerican Development Bank ( email )

1300 New York Avenue NW
Washington, DC 20577
United States
+1 (202) 5237619 (Phone)

HOME PAGE: http://https://www.sites.google.com/site/rodolfostucchi/

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