The School of Economics, Management, and Political Science at the University of Minho (EEG) is proud to announce that Miguel Chaves Gonçalves Parente, a PhD student in Economics, has presented his doctoral thesis entitled "European Structural Investment Funds Support to firms’ investment: an analysis of the impact on firm’s productivity and Market Struture", on October 15, 2025.
In the author's words:
"This thesis investigates the interplay between investment grants, market competition, and firm and industry performance. Drawing on detailed firm-level administrative data from Portugal (primarily European Regional Development Fund/ERDF grants, 2007 – 2021) and cross-country industry analyses across 15 European countries (2000 – 2019), this thesis explores how public grant programs shape economic outcomes – including productivity, employment, and exports – and influence broader industry dynamics and competition. The evidence suggests that, first, market concentration increased by five percentage points across European countries between 2000 and 2019, warranting policymakers’ attention to ensure a dynamic market environment. Second, while investment grants can enhance firm performance – particularly for micro and small-sized firms – the effectiveness of grants is critically determined by the number of grants each firm receives, firm size, timing (shorter intervals between grants are more effective), and the concentration and distribution of grants across industries. Regarding multiple grants, the second grant has a positive impact on value-added and labor productivity, which is larger than the effect of a single grant, and receiving two grants within four years (versus longer intervals) yields stronger positive effects on employment, value-added, and labor productivity. At the industry level, concentrating grants among a few firms is associated with reduced labor productivity growth in the medium to long term, though it does not significantly distort industry competition or market dynamism."
The doctoral thesis was supervised by Fernando Alexandre and Miguel Portela, professors in the Department of Economics.
EEG congratulates Miguel Chaves Gonçalves Parente on his defense and wishes him every success in his professional and personal life!
