An Analysis of the Impact of the Programa de Fomento às Empresas Prestadoras de Serviço de Comunicação Multimídia (PSCM) on the Growth of Mulimedia Comunication Services Companies

Abstract

This study estimates the effects of the PSCM (Programa de Fomento às Empresas Prestadoras de Serviço de Comunicação Multimídia), a public promotion program, on the growth of small companies providing multimedia communication services in the state of Santa Catarina, between 01/2016 and 12/2021. The PSCM was implemented on jan./2019. In order to estimate the possible causal relationship, the growth (in number of monthly accesses) of the companies is explored using Difference in Differences (DD) techniques, adopting as a counterfactual the small companies established in the state of Rio Grande do Sul that also operates in the telecommunications sector. The results suggest that the Program had a positive effect on companies’ growth. By estimating the propensity scores and forming data sets according to pairing and common support, the inquiry was reproduced in samples delimited by the number of accesses presented by the companies, seeking to understand the variation in the growth of the companies grouped into different size strata. The results suggests that there is a possible positive impact of 35% (thirty-five percent) in the 2nd quartile of the sample, as well as a positive correlation in the 3rd quartile of 41% (forty-one percent).