earticle

영어

In Korea, the government has instituted support programs to promote firms' growth in the material and component industrial sector. The objective of this study was to perform an empirical analysis of the additional effects of government support for growth in employment in the intermediate goods industry. We analyzed the growth of firms' employment, and methodologically, we adopted a propensity score matching estimator to deal with the selectivity issue. The results show that the R&D support program showed statistically significant effects on employment growth of beneficiary firms. Especially, the effects prolonged for 4 years after the support. Annually, the difference of employment growth rate between supported and unsupported firms increased as 9%, 21%, 22% and 23%, as years passed. This result partly implies that not only the direct impact from the program, but also the indirect impacts as growth in firm potential and capacities are affecting positively to firms' growth in employment.