Digital fiscal stimulus and SMEs: difference-in-differences evidence from Thailand’s half-and-half program

This study investigates the impact of Thailand's 'Half and Half' programme on SMEs. Designed to boost spending on small food vendors, the programme distributes subsidies via digital platforms, granting consumers a fixed-percentage copay on every eligible purchase. The paper employs a difference-in-differences approach using weekly province-level data from LINE MAN Wongnai. It finds that the programme significantly elevates sales among participating vendors relative to non-participants. Regarding the underlying mechanism, the findings indicate that the increase in sales is primarily driven by an expansion in the unique customer base, rather than an increase in individual order sizes. Crucially, these positive effects persist even after the programme's conclusion, with smaller vendors experiencing more pronounced sustained benefits. This investigation enriches the emerging literature on digital fiscal stimulus, underlining their potential for both immediate and sustained economic impact. The findings bear crucial implications for policymakers navigating fiscal strategies in an increasingly digital economic landscape.