Effects of Public Subsidies on Productivity of Firms in the Czech Food Industry

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F18%3A43913799" target="_blank" >RIV/62156489:43310/18:43913799 - isvavai.cz</a>

Alternative codes found

RIV/61384399:31130/18:00052299

Result on the web

<a href="https://imes.vse.cz/wp-content/uploads/2018/07/Conference_Proceedings_IMES_2018.pdf" target="_blank" >https://imes.vse.cz/wp-content/uploads/2018/07/Conference_Proceedings_IMES_2018.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Effects of Public Subsidies on Productivity of Firms in the Czech Food Industry

Original language description

Purpose: The previous studies report ambiguous effects of public subsidies on firm productivity. The aim of the paper was to assess the effects of public subsidies on the productivity of firms that were supported by the Czech Operational Programme Enterprise and Innovation (OPEI) in the EU programming period 2007-2013. Design/methodology/approach: We used the data for 147 supported companies in the Czech food processing industry (72.4% of all beneficiaries within the industry) to calculate four indicators related to the firm productivity, i.e. value added, personnel costs, value added per personnel costs and production efficiency. We analysed the level and development of selected productivity indicators and then we applied the paired t-test to compare the productivity in the period before the intervention (2005-2007) with the post-programme period (2014-2015). Findings: The obtained results suggest that participation of the Czech food processing companies in the OPEI did not lead to the higher productivity of the supported enterprises, both in terms of labour productivity and production efficiency two years after the end of the intervention. Research/practical implications: The presented findings, therefore, suggest that there is no significant impact of the public support from the OPEI on the productivity of supported enterprises in the Czech food industry. However, it is worth mentioning, that the results must be taken as a preliminary since we have not accounted for the firm-level characteristics such as firm size. The changes in the productivity indicators might also take more time, and therefore it would be very relevant to investigate the effects also in the long run. Originality/value: The presented study empirically contributes to the knowledge on the relationship between the allocation of the public subsidies and firm productivity from the perspective of the Czech agribusiness sector.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2018

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of the 6th International Conference Innovation Management, Entrepreneurship and Sustainability (IMES 2018)

ISBN

978-80-245-2274-6

ISSN

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e-ISSN

neuvedeno

Number of pages

9

Pages from-to

239-247

Publisher name

Oeconomica

Place of publication

Praha

Event location

Praha

Event date

May 31, 2018

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000461375200019