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The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen

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World Bank (WB)

Abstract: Matching grants are one of the most common types of private sector development programs used in developing countries. But government subsidies to private firms can be controversial. A key question is that of additionality: do these programs get firms to undertake innovative activities that they would not otherwise do, or merely subsidize activities that would take place anyway? Randomized controlled trials can provide the counterfactual needed to answer this question, but efforts to experiment with matching grant programs have often failed. This paper uses a randomized controlled trial of a matching grant program for firms in the Republic of Yemen to demonstrate the feasibility of conducting experiments with well-designed programs, and to measure the additionality impact. In the first year, the matching grant is found to have led to more product innovation, firms upgrading their accounting systems, marketing more, making more capital investments, and being more likely to report their sales grew.
Type: Working Paper
Publications & Research :: Policy Research Working Paper
Publications & Research
Link: http://hdl.handle.net/10986/22884
Subject: NEW MARKET
EMPLOYMENT
INTANGIBLE ASSET
EQUIPMENT
ENTERPRISE DEVELOPMENT
ACCOUNTING
MATERIALS
PRIVATE ENTERPRISES
MEDIUM ENTERPRISES
GROUPS
DATA COLLECTION
INFORMATION
PROGRAMS
SERVICES
MEDIUM ENTERPRISE
CONSULTANTS
IMPACTS
NEW PRODUCTS
LOAN
PROJECTS
FIRM SIZE
COMPUTER TRAINING
CITIES
PLANNING
PILOT PROJECT
QUALITY
REPORTING
COMPUTER
OPEN ACCESS
ACCOUNTING SERVICES
TRAINING
IMPACT EVALUATION
PRODUCTIVITY
CRITERIA
BUSINESS SERVICES
PROCUREMENT PROCESS
MARKETING
MARKETS
FIRM
LIMITED ACCESS
CONSULTANT
LEARNING
PRIVATE SECTOR DEVELOPMENT
RESEARCH
ENTERPRISES
CAPITAL INVESTMENTS
ACCOUNT
RADIO
CONSULTING SERVICES
GRANTS
CAPABILITIES
VENDORS
ACCESS TO THE INTERNET
TELEVISION CHANNEL
SMALL ENTERPRISE
RESOURCES
MANUFACTURING
PROJECT MANAGEMENT
TECHNOLOGY
ENTERPRISE SUPPORT
GRANT
FIRMS
PROCUREMENT
BUSINESS DEVELOPMENT SERVICES
BUSINESS PLAN
SMALL ENTERPRISES
RESULTS
PARTICIPATION
BUSINESS DEVELOPMENT
ELECTRICITY
RETAIL SALES
RETAIL SALES
ENTERPRISE
COST
PRIVATE SECTOR
MARKET
TRANSPARENT WAY
COMPANY
TECHNOLOGY DIFFUSION
NEW MARKETS
POLICY
ACCOUNTING SYSTEMS
MEDIA
RESULT
INNOVATION POLICY
EXPANSION
BUSINESS ORGANIZATIONS
SECURITY
BUSINESS
BUSINESSES
INVESTMENT
HUMAN RESOURCES
PERFORMANCE
BUSINESS ENVIRONMENT
TELECOM
PRODUCT INNOVATION
COMPANY INFORMATION
INNOVATION
FUNDING
SMALL FIRMS
ENTREPRENEURSHIP
CAPITAL INVESTMENT
PROFITS
IMPLEMENTATION
TARGET
PRICES
USES
BUSINESS TRAINING




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