Subsidized working capital loans and firm growth in times of crisis

Telegdy, Álmos ORCID: https://orcid.org/0000-0003-4651-5280 (2024) Subsidized working capital loans and firm growth in times of crisis. Economics Letters, 245 . DOI 10.1016/j.econlet.2024.112053

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Official URL: https://doi.org/10.1016/j.econlet.2024.112053

Abstract

I estimate the effects of subsidized working capital loans on Hungarian firms during the COVID-19 pandemic with panel data and matching methods. Sales and employment rose, with sales growing in expanding sectors and employment increasing in declining ones.

Item Type:

Article

Uncontrolled Keywords:

Working capital ; Subsidized loan ; COVID-19 ; Firm performance ; Hungary

JEL classification:

D22 - Firm Behavior: Empirical Analysis
H25 - Business Taxes and Subsidies including sales and value-added (VAT)

Divisions:

Institute of Economics

Subjects:

Finance

DOI:

10.1016/j.econlet.2024.112053