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State Aid Policy Between Competition And Economic Growth: The Impact Of State Aid To R&D On Gdp In The Eu Member States

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  • BACILA Nicolae

    (Babes-Bolyai University, Cluj Napoca)

Abstract

The paper focuses on the analysis of the relationship between state aid to R&D and economic growth, measured by GDP level, providing empirical evidence of a correlation between these variables. Using a methodology which combines the regression technique and Granger causality, we found that GDP represents a significant causal determinant of state aid, while the correlation the variables considered is positive and statistically significant, suggesting that, in spite of disparities between Member States, government support through state aid to R&D has evolved from maintaining undistorted competition to the possibility to act as an incentive for the economic growth in the EU.

Suggested Citation

  • BACILA Nicolae, 2012. "State Aid Policy Between Competition And Economic Growth: The Impact Of State Aid To R&D On Gdp In The Eu Member States," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 0(1), pages 86-94.
    • Handle: RePEc:blg:reveco:v:supplement:y:2012:i:1:p:86-94
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/suplimente/Volume1-2012.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    state aid policy; R&D; economic growth; technological change; market failure;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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