Assessing the effects of government support for small and medium businesses: Application of the synthetic control group method

Authors

  • Mariia Molodchik HSE University (Perm, Russian Federation) Автор
  • Anna Bykova The Agency for the Development of Small and Medium-Sized Enterprises of the Perm Krai; HSE University (Perm, Russian Federation) Автор
  • Egor Ivanov HSE University (Perm, Russian Federation) Автор
  • Daria Markanova OOO CFK "Zolotye dvery" (Perm, Russian Federation) Автор

DOI:

https://doi.org/10.22394/1993-7601-2025-78-28-49

Keywords:

государственная поддержка, малые и средние предприятия, метод синтетического контроля

Abstract

This article analyses the current landscape of government support for small and medium-sized enterprises (SMEs) and evaluates its effectiveness in terms of the "Priority Investment Project" program designed to stimulate investments in innovative and infrastructure initiatives. The contradictory results of previous empirical studies and the high demand for applied tools by public authorities have determined the need to adapt the synthetic control method to evaluate the effects that arise for small and medium-sized enterprises when obtaining the status of a "Priority Investment Project". Using the example of seven enterprises the opportunities of a synthetic control group are demonstrated.
Received: 28 November 2024 · Accepted: 15 January 2025

Agencies

The research was conducted within the framework of the RSF grant No. 23-78-10149.

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References

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Muraközy B., Telegdy Á. (2023). The effects of EU-funded enterprise grants on firms and workers. Journal of Comparative Economics, 51 (1), 216–234. DOI: 10.1016/j.jce.2022.09.001.

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Wu W., Hu Y., Wu Q. (2023). Subsidies and tax incentives — Does it make a difference on TFP? Evidences from China's photovoltaic and wind listed companies. Renewable Energy, 208, 645–656. DOI: 10.1016/j.renene.2023.03.080.

Xu R., Shen Y., Liu M., Li L., Xia X., Luo K. (2023). Can government subsidies improve innovation performance? Evidence from Chinese listed companies. Economic Modelling, 120, 106151. DOI: 10.1016/j.econmod.2022.106151.

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Published

2025-02-15

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How to Cite

Molodchik M., Bykova A., Ivanov E., et al. Assessing the effects of government support for small and medium businesses: Application of the synthetic control group method // Applied Econometrics. 2025. Vol. 78, no. 2. P. 28–49. https://doi.org/10.22394/1993-7601-2025-78-28-49