Do the Subsidies of the Rural Development Programme Increase Employment in Rural Firms? A Counterfactual Impact Evaluation from Mainland Finland

Abstract

This study examines the effect of the subsidies given to firms through the Rural Development Programme (RDP) for Mainland Finland in Finland during the 2007–2013 period. In order to understand the impacts that this programme had, the study uses counterfactual modelling to analyse what forms of subsidies impact job creation in supported firms. The results showed that subsidies from the RDP had a positive impact on the development of subsidized firms and thus, the RDP was a key instrument for the renewal of the countryside and the promotion of rural viability in Finland.

Keywords

• firm subsidies
• rdp
• counterfactual evaluation
• finland
• jobs