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Aiding Car Producers in the EU: Money in Search of a Strategy

  • Marcella Nicolini

    ()

    (FEEM (Fondazione Eni Enrico Mattei) and University of Pavia)

  • Carlo Scarpa

    ()

    (University of Brescia)

  • Paola Valbonesi

    ()

    (University of Padova)

We investigate how the general principles of the Treaty have been applied to the car sector in the EU, given the specific soft law provisions which are typical of the sector. A detailed quantitative analysis from 1990 to 2008 highlights a reduction of aid over time. A shift from sectoral to Òregional developmentÓ motives in granting aid to the sector is also observed in the last ten years. However, sector specific aid is now less explicit but it remains important. Large amounts of public money are spent without a consistent strategy, reducing capacity in some cases, expanding it in others. The scarcity of public funds calls for a more focussed European policy for this industry.

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File URL: http://economia.unipd.it/sites/decon.unipd.it/files/20100115.pdf
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Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0115.

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Length: 33 pages
Date of creation: Jun 2012
Date of revision:
Handle: RePEc:pad:wpaper:0115
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  1. Pasquale Schiraldi, 2011. "Automobile replacement: a dynamic structural approach," RAND Journal of Economics, RAND Corporation, vol. 42(2), pages 266-291, 06.
  2. James A. Brander & Barbara J. Spencer, 1984. "Export Subsidies and International Market Share Rivalry," NBER Working Papers 1464, National Bureau of Economic Research, Inc.
  3. repec:cup:cbooks:9780521631730 is not listed on IDEAS
  4. Timothy Besley & Paul Seabright, 1999. "The effects and policy implications of state aids to industry: an economic analysis," Economic Policy, CEPR;CES;MSH, vol. 14(28), pages 13-53, 04.
  5. Thomas H. Klier & James M. Rubenstein, 2008. "Who really made your car?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Oct.
  6. Martin Stephen & Valbonesi Paola, 2008. "Equilibrium State Aid in Integrating Markets," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-39, August.
  7. Patrizio Bianchi & Sandrine Labory (ed.), 2006. "International Handbook on Industrial Policy," Books, Edward Elgar, number 3451, December.
  8. Collie, David R., 2000. "State aid in the European Union: The prohibition of subsidies in an integrated market," International Journal of Industrial Organization, Elsevier, vol. 18(6), pages 867-884, August.
  9. Marcella Nicolini & Carlo Scarpa & Paola Valbonesi, 2012. "State Aid to Business in the European Union: a Focus on the Car Sector," DEM Working Papers Series 001, University of Pavia, Department of Economics and Management.
  10. Thomas Klier & James Rubenstein, 2008. "Who Really Made Your Car? Restructuring and Geographic change in the Auto Industry," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wrmyc, June.
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