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Allocation and impact of public incentive programmes to firms’ outward internationalization
- Firm participation in financial incentive programmes: The case of subsidies for outward internationalisation (coauthor with Francesca Sgobbi)
Based on a sample of internationalised firms, this study explores the process of participation in financial subsidies supporting outward foreign direct investment. Using firm-level data on subsidised firms and potential applicants, we show that the opportunity costs of application, the financial constraints and the riskiness of the foreign environment significantly affect the choice to apply for public funds. Policy makers should be concerned about the existence of self-selection mechanisms among eligible firms as they could reduce the expected impact of support programmes.
- The impact of public support to SMEs’ Outward FDI: Evidence from Italy (coauthor with Lucia Piscitello and Celeste Amorim Varum)
This article 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 FDIs in the period 1994-2008, comparing firms that benefited from public support (380) with a sample of comparable firms that also internationalized their activity in the same period but without any incentive (508). The results stemming from a two-step treatment effect model reveal that incentives were effective in stimulating SMEs’ growth, especially for smaller and younger firms; moreover, the effect of the incentive on growth was enhanced by the firm’s accumulated international experience.
Mariasole Bannò is research fellow at the Department of Economics and Management, University of Trento, Italy. She holds a PhD in “Economics and Management of Technology” from the University of Bergamo awarded in 2009 whit a thesis titled "Allocation, effects and effectiveness of public incentive programmes to firms’ outward internationalisation". Her research interests concern the evaluation of public policies and the outward and inward internationalisation of firms.
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