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Aiding Car Producers in the EU: Money in Search of a Strategy

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Author Info

  • Marcella Nicolini

    ()

  • Carlo Scarpa

    ()

  • Paola Valbonesi

    ()

Abstract

This article investigates how the general principles of the Treaty have been applied to the car sector in the EU, where the soft law provisions are of particular interest. A detailed quantitative analysis from 1990 to 2008 highlights a reduction of aid over time. A shift from sectoral to “regional development” motives in granting aid to the sector is also observed in the last 10 years. However, sector specific aid is now less explicit but it remains important. Large amounts of public money are spent without a consistent strategy, reducing capacity in some cases, expanding it in others. The scarcity of public funds calls for a more focussed European policy for this industry. Copyright Springer Science+Business Media New York 2013

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File URL: http://hdl.handle.net/10.1007/s10842-012-0146-5
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Bibliographic Info

Article provided by Springer in its journal Journal of Industry, Competition and Trade.

Volume (Year): 13 (2013)
Issue (Month): 1 (March)
Pages: 67-87

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Handle: RePEc:kap:jincot:v:13:y:2013:i:1:p:67-87

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Web page: http://springerlink.metapress.com/link.asp?id=105724

Related research

Keywords: automotive industry; state aid to business; EU competition policy; L62; L52; L40;

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References

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  1. Collie, David R., 2000. "State aid in the European Union: The prohibition of subsidies in an integrated market," International Journal of Industrial Organization, Elsevier, vol. 18(6), pages 867-884, August.
  2. Martin Stephen & Valbonesi Paola, 2008. "Equilibrium State Aid in Integrating Markets," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-39, August.
  3. Pasquale Schiraldi, 2010. "Automobile Replacement: A DynamicStructural Approach," STICERD - Economics of Industry Papers 49, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  4. Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc.
  5. James A. Brander & Barbara J. Spencer, 1984. "Export Subsidies and International Market Share Rivalry," NBER Working Papers 1464, National Bureau of Economic Research, Inc.
  6. Marcella Nicolini & Carlo Scarpa & Paola Valbonesi, 2012. "State Aid to Business in the European Union: a Focus on the Car Sector," DEM Working Papers Series 001, University of Pavia, Department of Economics and Management.
  7. Thomas H. Klier & James M. Rubenstein, 2008. "Who really made your car?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Oct.
  8. Timothy Besley & Paul Seabright, 1999. "The effects and policy implications of state aids to industry: an economic analysis," Economic Policy, CEPR & CES & MSH, vol. 14(28), pages 13-53, 04.
  9. Luger,Stan, 2000. "Corporate Power, American Democracy, and the Automobile Industry," Cambridge Books, Cambridge University Press, number 9780521631730, October.
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Citations

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Cited by:
  1. Ben Clift, 2013. "Economic Patriotism, the Clash of Capitalisms, and State Aid in the European Union," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 101-117, March.
  2. Michael Blauberger & Rike Krämer, 2013. "European Competition vs. Global Competitiveness Transferring EU Rules on State Aid and Public Procurement Beyond Europe," Journal of Industry, Competition and Trade, Springer, vol. 13(1), pages 171-186, March.
  3. Grigolon, Laura & Leheyda, Nina & Verboven, Frank, 2012. "Public support for the European car industry: An integrated analysis," ZEW Discussion Papers 12-077, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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