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Firm level effects of Covid State Aid in Spain
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| 2.43 MB | Adobe PDF |
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This Master Thesis investigates the impact of COVID-19 state aid measures (COVID aid) on
firm performance in Spain, with a focus on employment, turnover, profitability, and profit
margin. Using a difference-in-differences (DiD) approach, the study compares firms that
received COVID-19 aid with those that did not receive any state aid during the analyzed period.
The results demonstrate that COVID state aid significantly improved firm performance metrics
post-2020, highlighting the aid’s role in helping businesses navigate the turbulence of the
pandemic. The findings highlight the critical importance of targeted state interventions in
maintaining employment and improving economic resilience during crises.
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Covid-19 pandemic State aid Spain Italy Temporary Framework (TF) Firm performance Employment impact Orbis Database Difference in Differences (DID) Propensity Score Matching (PSM)