{ "title": "Targeting State Aid: Firm-level Evidence from France", "publication": "IMF Working Papers, June 12, 2026", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867", "canonical": "https://www.imf.org/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867", "overlayPath": "/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867/index.md", "summary": "This paper examines the firm-level impact of state aid in France from 2016–23 and how targeting affects economic outcomes.", "sections": [ { "heading": "Research design and data", "content": "- Study period: 2016–23.\n- Methodology: firm-level data and a difference-in-differences approach.\n- Scope: analysis of state aid targeting and its effects on firm-level economic outcomes in France." }, { "heading": "Key empirical findings", "content": "- Aid is most effective for young firms, improving real outcomes.\n- Aid crowds in private debt financing for recipient firms.\n- Size-based targeting has limited impact.\n- R&D support is particularly effective for young firms in high-tech sectors.\n- Energy aid has the strongest effects in manufacturing, indicating potential to help firms reduce emissions and facilitate the green transition." }, { "heading": "Sectoral and thematic insights", "content": "- High-tech sectors: R&D support yields pronounced benefits for young firms.\n- Manufacturing: energy aid produces the strongest effects, with implications for emission reductions and the green transition.\n- Energy sector and environmental outcomes: evidence suggests state aid can play a role in supporting decarbonization through targeted energy assistance." }, { "heading": "Policy implications and recommendations", "content": "- Prioritize targeting state aid to young firms to maximize improvements in real outcomes.\n- Consider prioritizing R&D support for young firms in high-tech sectors to enhance innovation-driven growth.\n- Deploy energy aid strategically in manufacturing to support emission reductions and facilitate the green transition.\n- Reassess size-based targeting approaches given their limited observed impact." }, { "heading": "Publication and identification", "content": "- Authors: Xun Li, Maryam Vaziri\n- Date: June 12, 2026\n- Pages: 31\n- Volume: 2026\n- Issue: 122\n- Series: Working Paper No. 2026/122\n- DOI: https://doi.org/10.5089/9798229049764.001\n- Stock No: WPIEA2026122\n- ISBN: 9798229049764\n- ISSN: 1018-5941\n\nSource: Targeting State Aid: Firm-level Evidence from France, IMF Working Papers (June 12, 2026) by Xun Li and Maryam Vaziri.\n\n---\n\n Content in this bundle\n\n- Working Paper\n - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867/index.md)", "[Structured JSON version](/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867/index.json)", "[Bundle manifest](/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867/bundle-manifest.json)", "Authors: Xun Li, Maryam Vaziri", "Published: June 12, 2026", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9798229049764.001", "Study period: 2016–23.", "Methodology: firm-level data and a difference-in-differences approach.", "Scope: analysis of state aid targeting and its effects on firm-level economic outcomes in France.", "Aid is most effective for young firms, improving real outcomes.", "Aid crowds in private debt financing for recipient firms.", "Size-based targeting has limited impact.", "R&D support is particularly effective for young firms in high-tech sectors.", "Energy aid has the strongest effects in manufacturing, indicating potential to help firms reduce emissions and facilitate the green transition.", "High-tech sectors: R&D support yields pronounced benefits for young firms.", "Manufacturing: energy aid produces the strongest effects, with implications for emission reductions and the green transition.", "Energy sector and environmental outcomes: evidence suggests state aid can play a role in supporting decarbonization through targeted energy assistance.", "Prioritize targeting state aid to young firms to maximize improvements in real outcomes.", "Consider prioritizing R&D support for young firms in high-tech sectors to enhance innovation-driven growth.", "Deploy energy aid strategically in manufacturing to support emission reductions and facilitate the green transition.", "Reassess size-based targeting approaches given their limited observed impact.", "Authors: Xun Li, Maryam Vaziri", "Date: June 12, 2026", "Pages: 31", "Volume: 2026", "Issue: 122", "Series: Working Paper No. 2026/122", "DOI: https://doi.org/10.5089/9798229049764.001", "Stock No: WPIEA2026122", "ISBN: 9798229049764", "ISSN: 1018-5941", "**Working Paper**" ], "related": [ { "title": "Working Paper", "role": "paper", "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2026/english/wpiea2026122-source-pdf.pdf", "summary": { "path": "/-/media/files/publications/wp/2026/english/wpiea2026122-source-pdf.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/files/publications/wp/2026/english/wpiea2026122-source-pdf.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867/index.md", "json": "/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867/index.json", "bundleManifest": "/en/publications/wp/issues/2026/06/12/targeting-state-aid-firm-level-evidence-from-france-576867/bundle-manifest.json" }, "generatedAtUtc": "2026-09-17T03:34:25.759Z" }