Postdisaster Subsidies for Small and Medium Firms: Insights for Effective Targeting

Abstract

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Industrial Policy Effects and the Case for Competition

“…However, the study is not conclusive in terms of the survival of firms that have received aid compared with the survival of firms that have not received aid. In studying the effects of subsidies for SMEs following the Great East Japan Earthquake of 2011, Kashiwagi (2019) finds that although subsidies were effective in the retail sector, they made no significant difference in manufacturing and service sectors. It is assumed that this finding stems from the variations in the degree of private support across sectors rather than from variations in supply chain disruption.…”