The Impact of Public Support on SMEs' Outward FDI: Evidence from Italy

17 Pages Posted: 6 Nov 2013

See all articles by Mariasole Bannò

Mariasole Bannò

University of Brescia

Lucia Piscitello

Politecnico di Milano - Dipartimento di Ingegneria gestionale

Celeste Amorim Varum

Universidade de Aveiro - Departamento de Economia

Date Written: January 2014

Abstract

This paper evaluates the impact of public financial support to the internationalization of small and medium enterprises. We analyze the growth performance of firms that conducted outward foreign direct investments in the period 1994–2008, comparing firms that benefited from public support (380) with a sample of firms that also internationalized their activity in the same period but without any incentive (508). The econometric results, stemming from a two‐step treatment effect model, reveal that incentives are effective in enhancing firms' performance in terms of domestic turnover and productivity growth, especially when they are targeted at smaller and younger firms. Moreover, the effect of the incentives is enhanced for firms that have accumulated international experience.

Suggested Citation

Bannò, Mariasole and Piscitello, Lucia and Amorim Varum, Celeste, The Impact of Public Support on SMEs' Outward FDI: Evidence from Italy (January 2014). Journal of Small Business Management, Vol. 52, Issue 1, pp. 22-38, 2014, Available at SSRN: https://ssrn.com/abstract=2350526 or http://dx.doi.org/10.1111/jsbm.12029

Mariasole Bannò (Contact Author)

University of Brescia ( email )

Piazza del Mercato, 15
Brescia, 25124
Italy
0039303715563 (Phone)
0039303702448 (Fax)

Lucia Piscitello

Politecnico di Milano - Dipartimento di Ingegneria gestionale ( email )

20113 Milan, Milano
Italy

HOME PAGE: http://www.dig.polimi.it/eng/comunita/cl.php?id=51

Celeste Amorim Varum

Universidade de Aveiro - Departamento de Economia ( email )

Rua Associação Humanitária Bombeiros de Aveiro
Aveiro, 3800
Portugal

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