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Volume 9
Issue 2
Online publication date 2013-07-15
Title The role of financial support in SME and economic development in Estonia
Author Jelena Hartsenko, Ako Sauga
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.
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Keywords Subsidies, productivity
Pages 10-22
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