Building on a 1998 study by Rajan and Zingales, this paperexamines the impact of both general and government financial support on privateR&D rates and on firm expansion.A description of the theoreticalbackground for this research is provided with an emphasis on the subsidizationof small- and...

The purpose of this paper is to demonstrate the interrelation between industrial structure, productivity growth imbalances and cross-sectoral subsidies when it comes to determining economic growth and shaping a country’s transition trajectory. The theoretical framework is a two-sector supply...