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

Author

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  • 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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    File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/9314rovinaru&pop.pdf
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    References listed on IDEAS

    as
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    7. Ravenscraft, David J, 1983. "Structure-Profit Relationships at the Line of Business and Industry Level," The Review of Economics and Statistics, MIT Press, pages 22-31.
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