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State Aid Policy in the European Union

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  • Çiğdem Börke Tunali
  • Jan Fidrmuc

Abstract

Industrial policy is an important tool of economic policy‐making, and this has been the case especially since the onset of the current global financial crisis in 2008. However, only relatively few empirical studies consider the macroeconomic effects of industrial policy, especially for European Union countries. In this study we investigate the effect of state aid policy on economic growth and investment, using a panel data set which covers 27 European Union countries over the period 1992–2011. Our results suggest that state aid policy is not an effective tool to achieve higher economic growth and investment rates.

Suggested Citation

  • Çiğdem Börke Tunali & Jan Fidrmuc, 2015. "State Aid Policy in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 53(5), pages 1143-1162, September.
  • Handle: RePEc:bla:jcmkts:v:53:y:2015:i:5:p:1143-1162
    DOI: 10.1111/jcms.12247
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    References listed on IDEAS

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    Cited by:

    1. Heim, Sven & Hüschelrath, Kai & Schmidt-Dengler, Philipp & Strazzeri, Maurizio, 2017. "The impact of state aid on the survival and financial viability of aided firms," European Economic Review, Elsevier, vol. 100(C), pages 193-214.
    2. Agnieszka Komor, 2020. "The Economic Dimension of Space," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 429-452.
    3. Roman Stöllinger & Mario Holzner, 2017. "State Aid and Export Competitiveness in the EU," Journal of Industry, Competition and Trade, Springer, vol. 17(2), pages 203-236, June.
    4. Briglauer, Wolfgang & Holzleitner, Christian & Vogelsang, Ingo, 2016. "The need for more efficient public funding of new communications infrastructure in EU member states," Information Economics and Policy, Elsevier, vol. 36(C), pages 26-35.
    5. Cerasa, Andrea & Buscaglia, Daniela, 2019. "A hedonic model of import steel prices: Is the EU market integrated?," Resources Policy, Elsevier, vol. 61(C), pages 241-249.

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