The role of financial support in SME and economic development in Estonia
The role of financial support in SME and economic development in Estonia
Author(s): Jelena Hartsenko, Ako SaugaSubject(s): Economy
Published by: Prague Development Center
Keywords: Subsidies; productivity
Summary/Abstract: This paper provides evidence on the links between efficiency and the governmental support for small-medium sized Estonian firms. The analysis is based on the Cobb-Douglas production function using micro level data. To analyse the impact of the financial support we applied a panel data framework. The estimation results confirm our main hypothesis that financial assistance increases productivity of Estonian SMEs, thus contributing the economic development.
Journal: Business and Economic Horizons
- Issue Year: 9/2013
- Issue No: 2
- Page Range: 10-22
- Page Count: 13
- Language: English