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Boeing-Airbus Subsidy Dispute: A Sequel

Author

Listed:
  • Carbaugh Robert J

    (Professor of Economics, Central Washington University)

  • Olienyk John

    (Professor of Finance and Real Estate, Colorado State University, Fort Collins)

Abstract

After intensifying in the 1980s and 1990s, the longstanding dispute between Europe and the United States over government subsidies for the commercial jetliner industry again heated up in 2004. This time, however, the stakes were higher because both nations sued each other at the World Trade Organization over government subsidies paid to their respective commercial jetliner companies. The dispute over subsidies has heightened trade tensions between the United States and Europe, as both companies spar for dominance in the highly competitive industry of commercial aircraft.This paper provides a sequel to "Boeing-Airbus Subsidy Dispute: An Economic and Trade Perspective," a paper written by these authors and published in the October-December 2001 issue of Global Economy Quarterly. The initial paper analyzed the trade frictions between Boeing and Airbus regarding governmental subsidies and its implications for the conduct and performance of the two companies in the commercial aircraft industry. This paper extends the analysis by discussing recent developments in the commercial aircraft industry, the subsidy dispute of Boeing and Airbus at the World Trade Organization, and the future health of the commercial jetliner industry.

Suggested Citation

  • Carbaugh Robert J & Olienyk John, 2004. "Boeing-Airbus Subsidy Dispute: A Sequel," Global Economy Journal, De Gruyter, vol. 4(2), pages 1-11, December.
    • Handle: RePEc:bpj:glecon:v:4:y:2004:i:2:n:6
    DOI: 10.2202/1524-5861.1047
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    Cited by:

    1. Olienyk John & Carbaugh Robert J, 2011. "Boeing and Airbus: Duopoly in Jeopardy?," Global Economy Journal, De Gruyter, vol. 11(1), pages 1-11, March.
    2. Ibsen, Alexander Z., 2009. "The politics of airplane production: The emergence of two technological frames in the competition between Boeing and Airbus," Technology in Society, Elsevier, vol. 31(4), pages 342-349.
    3. Asker, John, 2008. "Subsidizing (and taxing) business procurement," Journal of Public Economics, Elsevier, vol. 92(7), pages 1629-1643, July.

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