The main aim of this research project is to strengthen the database on the business support scheme by providing information on business support introduced as a result of the COVID-19 pandemic. The research project consists of seven sections.
The first section of the project examines in detail the business support instruments introduced in Finland during the COVID-19 pandemic and the whole they form. The next parts of the project compare Finland’s COVID-19 subsidy policy and the development of the overall economy during the pandemic in relation to control countries.
The following sections provide an econometric analysis of the causal effect of the cost subsidies distributed by the State Treasury on the turnover, profitability and labor force of the recipient companies, as well as on bankruptcies. The review utilizes leading econometric methods designed to assess causal effects, company-spesific data on business support received, and discontinuities in the availability of subsidies. The review focuses on 2020 and the first two quarters of 2021. In addition, the research project also assesses separately the extent to which the amount and level of support provided has been in line with the stated objectives and the importance of market-based financing in managing the crisis.
The final section of the project sets out recommendations for future economic crises. The final report will be completed by the end of March 2022.
