The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen

Matching grants are one of the most common types of private sector development programs used in developing countries. But government subsidies to private firms can be controversial. A key question is that of additionality: do these programs get fir...

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Main Authors:	Mckenzie, David, Assaf, Nabila, Cusolito, Ana Paula
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	NEW MARKET EMPLOYMENT INTANGIBLE ASSET EQUIPMENT ENTERPRISE DEVELOPMENT ACCOUNTING MATERIALS PRIVATE ENTERPRISES MEDIUM ENTERPRISES GROUPS DATA COLLECTION INFORMATION PROGRAMS SERVICES MEDIUM ENTERPRISE CONSULTANTS IMPACTS NEW PRODUCTS LOAN PROJECTS FIRM SIZE COMPUTER TRAINING CITIES PLANNING PILOT PROJECT QUALITY REPORTING COMPUTER OPEN ACCESS ACCOUNTING SERVICES TRAINING IMPACT EVALUATION PRODUCTIVITY CRITERIA BUSINESS SERVICES PROCUREMENT PROCESS MARKETING MARKETS FIRM LIMITED ACCESS CONSULTANT LEARNING PRIVATE SECTOR DEVELOPMENT RESEARCH ENTERPRISES CAPITAL INVESTMENTS ACCOUNT RADIO CONSULTING SERVICES GRANTS CAPABILITIES VENDORS ACCESS TO THE INTERNET TELEVISION CHANNEL SMALL ENTERPRISE RESOURCES MANUFACTURING PROJECT MANAGEMENT TECHNOLOGY ENTERPRISE SUPPORT GRANT FIRMS PROCUREMENT BUSINESS DEVELOPMENT SERVICES BUSINESS PLAN SMALL ENTERPRISES RESULTS PARTICIPATION BUSINESS DEVELOPMENT ELECTRICITY RETAIL SALES ENTERPRISE COST PRIVATE SECTOR MARKET TRANSPARENT WAY COMPANY TECHNOLOGY DIFFUSION NEW MARKETS POLICY ACCOUNTING SYSTEMS MEDIA RESULT INNOVATION POLICY EXPANSION BUSINESS ORGANIZATIONS SECURITY BUSINESS BUSINESSES INVESTMENT HUMAN RESOURCES PERFORMANCE BUSINESS ENVIRONMENT TELECOM PRODUCT INNOVATION COMPANY INFORMATION INNOVATION FUNDING SMALL FIRMS ENTREPRENEURSHIP CAPITAL INVESTMENT PROFITS IMPLEMENTATION TARGET PRICES USES BUSINESS TRAINING
Online Access:	http://documents.worldbank.org/curated/en/2015/10/25225125/additionality-impact-matching-grant-program-small-firms-experimental-evidence-yemen http://hdl.handle.net/10986/22884

id	okr-10986-22884
recordtype	oai_dc
spelling	okr-10986-228842021-04-23T14:04:11Z The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen Mckenzie, David Assaf, Nabila Cusolito, Ana Paula NEW MARKET EMPLOYMENT INTANGIBLE ASSET EQUIPMENT ENTERPRISE DEVELOPMENT ACCOUNTING MATERIALS PRIVATE ENTERPRISES MEDIUM ENTERPRISES GROUPS DATA COLLECTION INFORMATION PROGRAMS SERVICES MEDIUM ENTERPRISE CONSULTANTS IMPACTS NEW PRODUCTS LOAN PROJECTS FIRM SIZE COMPUTER TRAINING CITIES PLANNING PILOT PROJECT QUALITY REPORTING COMPUTER OPEN ACCESS ACCOUNTING SERVICES TRAINING IMPACT EVALUATION PRODUCTIVITY CRITERIA BUSINESS SERVICES PROCUREMENT PROCESS MARKETING MARKETS FIRM LIMITED ACCESS CONSULTANT LEARNING PRIVATE SECTOR DEVELOPMENT RESEARCH ENTERPRISES CAPITAL INVESTMENTS ACCOUNT RADIO CONSULTING SERVICES GRANTS CAPABILITIES VENDORS ACCESS TO THE INTERNET TELEVISION CHANNEL SMALL ENTERPRISE RESOURCES MANUFACTURING PROJECT MANAGEMENT TECHNOLOGY ENTERPRISE SUPPORT GRANT FIRMS PROCUREMENT BUSINESS DEVELOPMENT SERVICES BUSINESS PLAN SMALL ENTERPRISES RESULTS PARTICIPATION BUSINESS DEVELOPMENT ELECTRICITY RETAIL SALES RETAIL SALES ENTERPRISE COST PRIVATE SECTOR MARKET TRANSPARENT WAY COMPANY TECHNOLOGY DIFFUSION NEW MARKETS POLICY ACCOUNTING SYSTEMS MEDIA RESULT INNOVATION POLICY EXPANSION BUSINESS ORGANIZATIONS SECURITY BUSINESS BUSINESSES INVESTMENT HUMAN RESOURCES PERFORMANCE BUSINESS ENVIRONMENT TELECOM PRODUCT INNOVATION COMPANY INFORMATION INNOVATION FUNDING SMALL FIRMS ENTREPRENEURSHIP CAPITAL INVESTMENT PROFITS IMPLEMENTATION TARGET PRICES USES BUSINESS TRAINING Matching grants are one of the most common types of private sector development programs used in developing countries. But government subsidies to private firms can be controversial. A key question is that of additionality: do these programs get firms to undertake innovative activities that they would not otherwise do, or merely subsidize activities that would take place anyway? Randomized controlled trials can provide the counterfactual needed to answer this question, but efforts to experiment with matching grant programs have often failed. This paper uses a randomized controlled trial of a matching grant program for firms in the Republic of Yemen to demonstrate the feasibility of conducting experiments with well-designed programs, and to measure the additionality impact. In the first year, the matching grant is found to have led to more product innovation, firms upgrading their accounting systems, marketing more, making more capital investments, and being more likely to report their sales grew. 2015-11-05T19:45:41Z 2015-11-05T19:45:41Z 2015-10 Working Paper http://documents.worldbank.org/curated/en/2015/10/25225125/additionality-impact-matching-grant-program-small-firms-experimental-evidence-yemen http://hdl.handle.net/10986/22884 English en_US Policy Research Working Paper;No. 7462 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Middle East and North Africa Yemen, Republic of
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	NEW MARKET EMPLOYMENT INTANGIBLE ASSET EQUIPMENT ENTERPRISE DEVELOPMENT ACCOUNTING MATERIALS PRIVATE ENTERPRISES MEDIUM ENTERPRISES GROUPS DATA COLLECTION INFORMATION PROGRAMS SERVICES MEDIUM ENTERPRISE CONSULTANTS IMPACTS NEW PRODUCTS LOAN PROJECTS FIRM SIZE COMPUTER TRAINING CITIES PLANNING PILOT PROJECT QUALITY REPORTING COMPUTER OPEN ACCESS ACCOUNTING SERVICES TRAINING IMPACT EVALUATION PRODUCTIVITY CRITERIA BUSINESS SERVICES PROCUREMENT PROCESS MARKETING MARKETS FIRM LIMITED ACCESS CONSULTANT LEARNING PRIVATE SECTOR DEVELOPMENT RESEARCH ENTERPRISES CAPITAL INVESTMENTS ACCOUNT RADIO CONSULTING SERVICES GRANTS CAPABILITIES VENDORS ACCESS TO THE INTERNET TELEVISION CHANNEL SMALL ENTERPRISE RESOURCES MANUFACTURING PROJECT MANAGEMENT TECHNOLOGY ENTERPRISE SUPPORT GRANT FIRMS PROCUREMENT BUSINESS DEVELOPMENT SERVICES BUSINESS PLAN SMALL ENTERPRISES RESULTS PARTICIPATION BUSINESS DEVELOPMENT ELECTRICITY RETAIL SALES RETAIL SALES ENTERPRISE COST PRIVATE SECTOR MARKET TRANSPARENT WAY COMPANY TECHNOLOGY DIFFUSION NEW MARKETS POLICY ACCOUNTING SYSTEMS MEDIA RESULT INNOVATION POLICY EXPANSION BUSINESS ORGANIZATIONS SECURITY BUSINESS BUSINESSES INVESTMENT HUMAN RESOURCES PERFORMANCE BUSINESS ENVIRONMENT TELECOM PRODUCT INNOVATION COMPANY INFORMATION INNOVATION FUNDING SMALL FIRMS ENTREPRENEURSHIP CAPITAL INVESTMENT PROFITS IMPLEMENTATION TARGET PRICES USES BUSINESS TRAINING
spellingShingle	NEW MARKET EMPLOYMENT INTANGIBLE ASSET EQUIPMENT ENTERPRISE DEVELOPMENT ACCOUNTING MATERIALS PRIVATE ENTERPRISES MEDIUM ENTERPRISES GROUPS DATA COLLECTION INFORMATION PROGRAMS SERVICES MEDIUM ENTERPRISE CONSULTANTS IMPACTS NEW PRODUCTS LOAN PROJECTS FIRM SIZE COMPUTER TRAINING CITIES PLANNING PILOT PROJECT QUALITY REPORTING COMPUTER OPEN ACCESS ACCOUNTING SERVICES TRAINING IMPACT EVALUATION PRODUCTIVITY CRITERIA BUSINESS SERVICES PROCUREMENT PROCESS MARKETING MARKETS FIRM LIMITED ACCESS CONSULTANT LEARNING PRIVATE SECTOR DEVELOPMENT RESEARCH ENTERPRISES CAPITAL INVESTMENTS ACCOUNT RADIO CONSULTING SERVICES GRANTS CAPABILITIES VENDORS ACCESS TO THE INTERNET TELEVISION CHANNEL SMALL ENTERPRISE RESOURCES MANUFACTURING PROJECT MANAGEMENT TECHNOLOGY ENTERPRISE SUPPORT GRANT FIRMS PROCUREMENT BUSINESS DEVELOPMENT SERVICES BUSINESS PLAN SMALL ENTERPRISES RESULTS PARTICIPATION BUSINESS DEVELOPMENT ELECTRICITY RETAIL SALES RETAIL SALES ENTERPRISE COST PRIVATE SECTOR MARKET TRANSPARENT WAY COMPANY TECHNOLOGY DIFFUSION NEW MARKETS POLICY ACCOUNTING SYSTEMS MEDIA RESULT INNOVATION POLICY EXPANSION BUSINESS ORGANIZATIONS SECURITY BUSINESS BUSINESSES INVESTMENT HUMAN RESOURCES PERFORMANCE BUSINESS ENVIRONMENT TELECOM PRODUCT INNOVATION COMPANY INFORMATION INNOVATION FUNDING SMALL FIRMS ENTREPRENEURSHIP CAPITAL INVESTMENT PROFITS IMPLEMENTATION TARGET PRICES USES BUSINESS TRAINING Mckenzie, David Assaf, Nabila Cusolito, Ana Paula The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen
geographic_facet	Middle East and North Africa Yemen, Republic of
relation	Policy Research Working Paper;No. 7462
description	Matching grants are one of the most common types of private sector development programs used in developing countries. But government subsidies to private firms can be controversial. A key question is that of additionality: do these programs get firms to undertake innovative activities that they would not otherwise do, or merely subsidize activities that would take place anyway? Randomized controlled trials can provide the counterfactual needed to answer this question, but efforts to experiment with matching grant programs have often failed. This paper uses a randomized controlled trial of a matching grant program for firms in the Republic of Yemen to demonstrate the feasibility of conducting experiments with well-designed programs, and to measure the additionality impact. In the first year, the matching grant is found to have led to more product innovation, firms upgrading their accounting systems, marketing more, making more capital investments, and being more likely to report their sales grew.
format	Working Paper
author	Mckenzie, David Assaf, Nabila Cusolito, Ana Paula
author_facet	Mckenzie, David Assaf, Nabila Cusolito, Ana Paula
author_sort	Mckenzie, David
title	The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen
title_short	The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen
title_full	The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen
title_fullStr	The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen
title_full_unstemmed	The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen
title_sort	additionality impact of a matching grant program for small firms : experimental evidence from yemen
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/10/25225125/additionality-impact-matching-grant-program-small-firms-experimental-evidence-yemen http://hdl.handle.net/10986/22884
_version_	1764452321405698048

The Additionality Impact of a Matching Grant Program for Small Firms : Experimental Evidence from Yemen

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