Government Support and Employment of Manufacturing SMEs
Verimlilik Dergisi, vol.58, no.1, pp.73-90, 2024 (TRDizin)
- Publication Type: Article / Article
- Volume: 58 Issue: 1
- Publication Date: 2024
- Doi Number: 10.51551/verimlilik.1314520
- Journal Name: Verimlilik Dergisi
- Journal Indexes: TR DİZİN (ULAKBİM)
- Page Numbers: pp.73-90
- Ankara Yıldırım Beyazıt University Affiliated: Yes
Abstract
Purpose: This study aims to examine how government incentives affect SME employment in Türkiye's manufacturing sector. Methodology: The dataset used in this study was derived from a survey conducted by a privately owned London-based company with the assistance of Türkiye's Ministry of Industry and Technology. Ordinary least squares and two-stage least squares regression techniques were used to analyze the relationship between government incentives and employment. Findings: In the analysis, we found that between 2013 and 2016, jobs were created by Turkish manufacturing SMEs with the use of state assistance. Firm-level characteristics, including firms' age, capacity utilization rate, and innovative activities, were also found to have a substantial impact on SME employment. Originality: Our study is the first to examine the impact of incentives on employment in manufacturing SMEs in Türkiye using a micro dataset administered to 10.063 manufacturing firms by the Ministry of Industry and Technology.