The Relation between State Aid and Economic Development in the European Union
The main purpose of the paper is to provide a quantitative and qualitative analy-sis of state aid policy and its role in ensuring economic development in the EU. Based on theoretical approaches and empirical evidence, it is assumed that an effi-cient state aid policy should support the macroeconomic stabilization and the eco-nomic development. Therefore an econometric model is proposed to evaluate and quantify the relation between the level of horizontal aid and the value of GDP per capita at purchasing power parity standard. According to the results of the analysis, important disparities can be identified in analyzing the correlation between the two indicators mentioned above, deficitary to several EU member states, suggesting the necessity of a better coordination in the economic policies. Thus, one of the most relevant conclusions is that while the gen-eral objective of reducing state aid level is mainly achieved since the early 1990s, a redirection of state aid towards horizontal objectives can be observed beginning with 2000 and is still ongoing at present with important consequences for the general economic development of the EU member states.
Volume (Year): 13 (2010)
Issue (Month): 36 (June)
|Contact details of provider:|| Postal: 6 ROMANA PLACE, 70167 - BUCHAREST|
Web page: http://www.rei.ase.ro/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:rej:journl:v:13:y:2010:i:36:p:111-122. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Radu Lupu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.