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  1. 1 Business and Economic Horizons

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  1. 1 Hartšenko J.

  2. 1 Sauga A.

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  1. 1 2013

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The role of financial support in SME and economic development in Estonia

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Hartšenko J., Sauga A.
Business and Economic Horizons
|
2013
|
vol. 9
|
issue 2
10-22
EN
This paper provides evidence on the links between efficiency and the governmental support for small-medium sized Estonian firms. The analysis is based on the Cobb-Douglas production function using micro level data. To analyse the impact of the financial support we applied a panel data framework. The estimation results confirm our main hypothesis that financial assistance increases productivity of Estonian SMEs, thus contributing the economic development.
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