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The Subsidies – An Instrument Of Trade Policy.Case Study: The Boeing-Airbus “War”

Author

Listed:
  • ROVINARU Mihaela

    (“Babes-Bolyai” University, Cluj-Napoca, Romania)

  • POP Larisa

    (“Babes-Bolyai” University, Cluj-Napoca, Romania)

Abstract

For decades, the problem of governmental intervention on the markets provoked significant debates, representing even nowadays a controversial matter. A prevailing form of intervention is represented by subsidies. Although subsidies are regularly used by less-developed countries to stimulate exports, they are not forgotten by the advanced economies. From several examples of controversies generated by subsidy use, we examine in this paper “The Boeing-Airbus war”. For a decade, US and EU are accusing each other of “helping” the aircraft producers through governmental funds. We try to see who is right, what are the arguments, and if there will be a winner.

Suggested Citation

  • ROVINARU Mihaela & POP Larisa, 2014. "The Subsidies – An Instrument Of Trade Policy.Case Study: The Boeing-Airbus “War”," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 9(3), pages 154-167, December.
  • Handle: RePEc:blg:journl:v:9:y:2014:i:3:p:154-167
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