Evaluating Different Types of Enterprise Support Programs Using Panel Firm Data: Evidence From The Mexican Manufacturing Sector

This paper uses a ten-year panel of firm-level data (1994–2005) to evaluate different type of enterprise support programs in Mexico. The applied methodology is a fixed effect model that addresses selectivity bias from observed and unobserved firm heterogeneity. The analysis finds evidence that participation in some Business Development Services (BDS), specifically environmental certification services, and Research and Development (R&D) support programs is associated with improvements on outcomes such as the value added per worker, employment, and exports. The magnitude and statistical significance of the estimated effects varies across programs, with estimated effects of R&D programs being larger and more precisely estimated. Further, the paper finds evidence that some of the positive effects of these programs can take several years to realize.