The effects of government grants on plant survival: A micro-econometric analysis

In this paper, we analyse the impact of government grant provision on plant survival. To this end, we utilise rich information derived from three data sources for the manufacturing sector in Ireland, where grant provision has been an important part of industrial policy. Our empirical analysis is based on estimating a hazard model of plant exit on a matched sample of plants in order to provide a valid counterfactual. Our results indicate that grants can in some cases provide an important impetus to plant survival.