Michael Grimm
Universität Passau, Lehrstuhl für Development Economics
Email michael.grimm@uni-passau.de
Website https://www.wiwi.uni-passau.de/en/development-economics
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and with a control group. The experiment was implemented in a semi-urban an
d rural fragile setting where subsidizing innovative activities might be par
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petition. After two years, beneficiaries of cash grants showed higher surviv
al rates, improved business practices, a higher degree of formalization, and
more activities for innovation relative to recipients of matching grants an
d the control group, but we saw no effects on profits, sales, and employment
. Across all outcomes, beneficiaries of cash grants performed better than be
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of cash grants also increased their capital stock more and were more resilie
nt to the COVID-19 crisis.' (1014 chars)
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ticularly important. Firms were selected on the basis of a business plan com
petition. After two years, beneficiaries of cash grants showed higher surviv
al rates, improved business practices, a higher degree of formalization, and
more activities for innovation relative to recipients of matching grants an
d the control group, but we saw no effects on profits, sales, and employment
. Across all outcomes, beneficiaries of cash grants performed better than be
neficiaries of matching grants, for them the treatment effects are smaller a
nd often insignificant, though implementation costs were higher. Recipients
of cash grants also increased their capital stock more and were more resilie
nt to the COVID-19 crisis.' 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Universität Passau, Lehrstuhl für Development Economics
Email michael.grimm@uni-passau.de
Website https://www.wiwi.uni-passau.de/en/development-economics