Abstrakti
This report studies how state-granted direct business are allocated to export firms in Finland. In addition, the recipients of the subsidies are described generally. The report covers 58 subsidy programs that had almost 20 000 beneficiaries and distributed subsidies worth of 1,37 billion euros in year 2022.
Most business subsidies are not directed to export firms, but the promotion of export activities or competitiveness is not even the objective of most subsidy programs. Nevertheless, export firms received about 40 percent of all the direct business subsidies that were granted in 2022 and are studied in this report, because the few subsidy programs that were important to exporters distributed substantial amounts of money. For most export firms, the received subsidies relative to their revenues and their value of exports were small, so subsidies are unlikely to have a major impact on their operations.
A subsidy that benefits export firms does not necessarily promote export activities, because the subsidy might target other purposes, or it might have only a minor effect on recipients’ operations. On the other hand, a subsidy that is not directed to exporters might still promote export activities through the structures of the economy, or by subsidizing potential exporters.
The recipients of direct business subsidies had lower labor productivity than all the firms within the same industry. However, the granted subsidy money was quite heavily directed to firms with relatively high labor productivity.
The number of firms receiving direct business subsidies is large, and the grants they receive are usually small. There are several subsidy programs, and most of them grant only small amounts of money. Besides, the number of authorities granting subsidies is large. The administrative costs of the fragmented subsidy system might be large relative to the possible societal benefits of the subsidies. In addition, it is difficult to evaluate the complex subsidy system in a holistic way.
Most business subsidies are not directed to export firms, but the promotion of export activities or competitiveness is not even the objective of most subsidy programs. Nevertheless, export firms received about 40 percent of all the direct business subsidies that were granted in 2022 and are studied in this report, because the few subsidy programs that were important to exporters distributed substantial amounts of money. For most export firms, the received subsidies relative to their revenues and their value of exports were small, so subsidies are unlikely to have a major impact on their operations.
A subsidy that benefits export firms does not necessarily promote export activities, because the subsidy might target other purposes, or it might have only a minor effect on recipients’ operations. On the other hand, a subsidy that is not directed to exporters might still promote export activities through the structures of the economy, or by subsidizing potential exporters.
The recipients of direct business subsidies had lower labor productivity than all the firms within the same industry. However, the granted subsidy money was quite heavily directed to firms with relatively high labor productivity.
The number of firms receiving direct business subsidies is large, and the grants they receive are usually small. There are several subsidy programs, and most of them grant only small amounts of money. Besides, the number of authorities granting subsidies is large. The administrative costs of the fragmented subsidy system might be large relative to the possible societal benefits of the subsidies. In addition, it is difficult to evaluate the complex subsidy system in a holistic way.
| Julkaisun otsikon käännös | Allocation of direct business subsidies to export firms |
|---|---|
| Alkuperäiskieli | Suomi |
| Kustantaja | Valtion taloudellinen tutkimuskeskus (VATT) |
| Sivumäärä | 96 |
| Tila | Julkaistu - 21 marrask. 2024 |
| OKM-julkaisutyyppi | D4 Julkaistu kehittämis- tai tutkimusraportti taikka -selvitys |
Julkaisusarja
| Nimi | Datahuone-raportti |
|---|---|
| Numero | 3 |
| Vuosikerta | 2024 |