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Evaluating SME Support Programs in Chile Using Panel Firm Data
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Tan, Hong, author.
- Series:
- Policy research working papers.
- World Bank e-Library.
- Policy research working papers
- Language:
- English
- Subjects (All):
- Beneficiaries.
- Business development.
- Business development services.
- Control groups.
- Economic sectors.
- ICT Policy and Strategies.
- Impact Evaluation.
- Industrial Enterprises.
- Industry association.
- Information and Communication Technologies.
- Information systems.
- Innovations.
- Intermediate outcomes.
- Labor Policies.
- Matching methods.
- Microfinance.
- Poverty Impact Evaluation.
- Poverty Monitoring and Analysis.
- Poverty Reduction.
- Programs.
- Research centers.
- Social Protections and Labor.
- Targeting.
- Technology transfer.
- Training activities.
- Training institutes.
- Training programs.
- Local Subjects:
- Beneficiaries.
- Business development.
- Business development services.
- Control groups.
- Economic sectors.
- ICT Policy and Strategies.
- Impact Evaluation.
- Industrial Enterprises.
- Industry association.
- Information and Communication Technologies.
- Information systems.
- Innovations.
- Intermediate outcomes.
- Labor Policies.
- Matching methods.
- Microfinance.
- Poverty Impact Evaluation.
- Poverty Monitoring and Analysis.
- Poverty Reduction.
- Programs.
- Research centers.
- Social Protections and Labor.
- Targeting.
- Technology transfer.
- Training activities.
- Training institutes.
- Training programs.
- Physical Description:
- 1 online resource (41 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2009
- System Details:
- data file
- Summary:
- This paper evaluates small and medium enterprise (SME) support programs in Chile using a firm-level panel for the 1992-2006 period on two groups of firms - a treatment group that participated in SME programs and a control group that did not. These unique panel data provide an unprecedented opportunity to address several issues that have plagued impact evaluations of SME programs - selectivity bias from observed and unobserved firm heterogeneity, identification of an appropriate control group, and inability to track firms over a long enough period of time for performance outcomes to be realized. Using difference-in-differences models combined with propensity score matching methods, the paper finds evidence that participation in SME programs in Chile is associated with improvements in intermediate outcomes (training, adoption of new technology and organizational practices), and causally with positive and statistically significant impacts on sales, production, labor productivity, wages and exports. The mixed results of previous studies may be attributable in part to the confounding effects of unobserved heterogeneity motivating selection into programs of firms with relatively low productivity levels, and in part to time-effects of program participation occurring in years after the time horizon of most impact evaluation studies.
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