Efficiency of the Localization Subsidies

Oukarfi, Samira

Efficiency of the Localization Subsidies - 2006.


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This paper analyses the impact of subsidies on firms’ location. A database encompassing data from surveys on firms located in three French regions characterised by different levels of development (core, intermediate and peripheral) has been built. The model considers that a firm, in search of location, arbitrates between the intensity of the different externalities (pecuniary and non-pecuniary) and regional public aids. The econometric results show that the incentive measures that are implemented have a different impact according to the level of regional development. Classification JEL : R11, R12, R38.

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