Industrial policy works for smaller firms

John Van Reenen 17 February 2012

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The Great Recession has brought industrial policy back into fashion. Huge subsidies have been granted by governments around the world to private firms, most dramatically in financial services, but also in other sectors like automobiles (see for instance Evenett 2011). Despite the ubiquity and cost of such schemes, rigorous evaluations of the causal effect of these policies are rare.

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Topics:  EU policies Industrial organisation International trade

Tags:  subsidies, protectionism, small business