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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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    7. 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.
    8. 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.
    9. Gouider, Abdessalem & Nouira, Ridha & Saafi, Sami, 2022. "Re-Exploring the Nexus Between Economic Freedom and Growth: Is There a Threshold Effect?," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(3), pages 147-167, September.
    10. Kállay, László & Takács, Tibor, 2023. "The impact of public subsidies on investment and growth: Policy about evaluation, selection and monitoring," Journal of Policy Modeling, Elsevier, vol. 45(5), pages 895-909.
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