Government Support During COVID-19 and Corruption
We analyze the allocation and effectiveness of government support in response to the COVID-19 outbreak across a nationally representative sample of firms in 32 countries representing different levels of institutional transparency. The probability of receiving government support is higher for larger...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
2023-09-01
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| Series: | Scientific Annals of Economics and Business |
| Subjects: | |
| Online Access: | http://saeb.feaa.uaic.ro/index.php/saeb/article/view/2085 |
| _version_ | 1797673891610492928 |
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| author | Zana Beqiri Luma Rilind Ademi |
| author_facet | Zana Beqiri Luma Rilind Ademi |
| author_sort | Zana Beqiri Luma |
| collection | DOAJ |
| description | We analyze the allocation and effectiveness of government support in response to the COVID-19 outbreak across a nationally representative sample of firms in 32 countries representing different levels of institutional transparency. The probability of receiving government support is higher for larger firms, firms belonging to business support groups and innovative firms in low corruption countries. In high corruption, countries firms competing against unregistered establishments, with lack of internationally recognized quality certification and no formalized business strategy are more likely to receive government support. Using the panel structure of the data to address reverse causality, selection bias and unobserved heterogeneity, we then find that government support improves firm-level outcomes more strongly in low corruption countries. Among different types of government support, we find wage subsidies to be more effective in high corruption countries while technical assistance for adoption of digital technologies in low corruption countries. In addition, social distancing and lockdown policies do not seem to be as effective in improving firm-level outcomes in high-corruption countries most likely because of weaker capacities to enforce such policies. These results show the importance of enhancing systems of accountability and enforcement procedures that will ensure that fiscal stimulus aid is deployed to benefit those who need it the most. |
| first_indexed | 2024-03-11T21:51:57Z |
| format | Article |
| id | doaj.art-ee031d79c068442a8672dfeb579e0a55 |
| institution | Directory Open Access Journal |
| issn | 2501-3165 |
| language | English |
| last_indexed | 2024-03-11T21:51:57Z |
| publishDate | 2023-09-01 |
| publisher | Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house |
| record_format | Article |
| series | Scientific Annals of Economics and Business |
| spelling | doaj.art-ee031d79c068442a8672dfeb579e0a552023-09-26T09:00:06ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652023-09-0170347349710.47743/saeb-2023-00291116Government Support During COVID-19 and CorruptionZana Beqiri Luma0Rilind Ademi1Mother Teresa University – Skopje, North MacedoniaMother Teresa University – Skopje, North MacedoniaWe analyze the allocation and effectiveness of government support in response to the COVID-19 outbreak across a nationally representative sample of firms in 32 countries representing different levels of institutional transparency. The probability of receiving government support is higher for larger firms, firms belonging to business support groups and innovative firms in low corruption countries. In high corruption, countries firms competing against unregistered establishments, with lack of internationally recognized quality certification and no formalized business strategy are more likely to receive government support. Using the panel structure of the data to address reverse causality, selection bias and unobserved heterogeneity, we then find that government support improves firm-level outcomes more strongly in low corruption countries. Among different types of government support, we find wage subsidies to be more effective in high corruption countries while technical assistance for adoption of digital technologies in low corruption countries. In addition, social distancing and lockdown policies do not seem to be as effective in improving firm-level outcomes in high-corruption countries most likely because of weaker capacities to enforce such policies. These results show the importance of enhancing systems of accountability and enforcement procedures that will ensure that fiscal stimulus aid is deployed to benefit those who need it the most.http://saeb.feaa.uaic.ro/index.php/saeb/article/view/2085covid-19 crisispolicy interventionscorruptiontechnical assistancesubsidies. |
| spellingShingle | Zana Beqiri Luma Rilind Ademi Government Support During COVID-19 and Corruption Scientific Annals of Economics and Business covid-19 crisis policy interventions corruption technical assistance subsidies. |
| title | Government Support During COVID-19 and Corruption |
| title_full | Government Support During COVID-19 and Corruption |
| title_fullStr | Government Support During COVID-19 and Corruption |
| title_full_unstemmed | Government Support During COVID-19 and Corruption |
| title_short | Government Support During COVID-19 and Corruption |
| title_sort | government support during covid 19 and corruption |
| topic | covid-19 crisis policy interventions corruption technical assistance subsidies. |
| url | http://saeb.feaa.uaic.ro/index.php/saeb/article/view/2085 |
| work_keys_str_mv | AT zanabeqiriluma governmentsupportduringcovid19andcorruption AT rilindademi governmentsupportduringcovid19andcorruption |