|Author Name||KASHIWAGI Yuzuka (Waseda University)|
|Creation Date/NO.||April 2019 19-E-029|
|Research Project||Research on Global Inter-firm Networks and Related Policies|
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This paper examines the effect of capital subsidies after great disasters on the recovery of small- and medium-sized enterprises (SMEs) using propensity score matching estimations. Our estimates show that capital subsidies were effective for the recovery of performance for SMEs in the retail sector. However, in the manufacturing and other service sectors, we find no significant difference between the recovery of SMEs with and without the subsidy. Utilizing firm-level supply chain data, we further explore the mechanism behind the heterogeneity across sectors. Our results suggest that the heterogeneity comes from variations in the degree of private support across sectors rather than variations in supply chain disruption.