The Impact of Financial Support to Firms During Crises: The Case of Covid Aid in the EU
The Covid-19 pandemic caused a global economic crisis, prompting governments to provide substantial state aid. This study examines the effectiveness of Covid-related financial support in Spain and Italy, focusing on its impact on firm recovery. Using a difference-in-differences (DiD) approach with propensity score weighting, it compares firms receiving aid to those without. The results show significant benefits for micro-firms, including mitigated turnover declines and increased investments in both tangible and intangible assets. The construction sector particularly benefited from the aid. These findings highlight the critical role of government support in business survival and recovery, especially for SMEs, during the pandemic.
CANZIAN Giulia;
ELENA Crivellaro;
DUSO Tomaso;
FERRARA Antonella;
SASSO Alessandro;
VERZILLO Stefano;
2025-11-28
ELSEVIER
JRC142330
1879-1751 (online),
https://www.sciencedirect.com/science/article/pii/S0167268125004561,
https://publications.jrc.ec.europa.eu/repository/handle/JRC142330,
10.1016/j.jebo.2025.107339 (online),
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