Competitiveness and state aid to enterprises
AbstractThis paper attempts to contribute to the analysis of links between state aid and competitiveness of manufacturing industries during 1998-2002. Statistical source on subsidies include all subsidies to capital gathered on enterprise level by Czech Statistical Office. The enterprise data have been aggregated by economic activity on 3digit level and competitiveness was defined as adjusted market shares of 3digit industries. Competitiveness on domestic markets is defined as the share of industry output sold on domestic market on the total domestic demand and competitiveness on the European market is defined as the share of industry export to EU market on the total European demand. In the first step we described subsidies to manufacturing industries and we aimed to answer the question what industries get the subsidies. In the second step we identified competitive industries on domestic and foreign markets. In the core part we analyzed links between subsidies and competitiveness of manufacturing industries in both static as well as dynamic perspective based on correlations. Our analysis confirmed that state subsidies are allocated to industries that have a strong position on the domestic markets and that state subsidies are not related to the competitiveness improvement.
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Bibliographic InfoArticle provided by University of Economics, Prague in its journal Politická ekonomie.
Volume (Year): 2008 (2008)
Issue (Month): 2 ()
Postal: Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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