Factors underlying the employment effects of financial assistance policies

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Abstract
This paper examines the employment creation effects of financial assistance to industry. The assistance schemes covered are the regional policy instruments of Regional Development Grant and Regional Selective Assistance, and the assistance policies of local authorities and a number of other agencies. Using survey data and regression techniques it is shown that there are significant variations in cost-effectiveness between assistance schemes and between projects of different purpose. A policy implication of this is that agencies could increase the employment creation effects of their policies by focusing assistance on particular types of project.