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State Aid, R&D, and the Digital Content of Trade

Author

Listed:
  • Chiara Castelli

    (The Vienna Institute for International Economic Studies, wiiw)

  • Dario Guarascio
  • Stefan Jestl

    (The Vienna Institute for International Economic Studies, wiiw)

  • Robert Stehrer

    (The Vienna Institute for International Economic Studies, wiiw)

Abstract

We test for the role of state aid as a driver of digital competitiveness at the industry level, focusing on the digital factor content of trade. Results show that state aid may increase digital competitiveness, particularly in R&D-intensive industries and in relation to the export of (digital) capital-intensive goods and services. Interestingly, aggregate state aid appears to be more effective than specific R&D funds in explaining the performance of country-industries in foreign markets.

Suggested Citation

  • Chiara Castelli & Dario Guarascio & Stefan Jestl & Robert Stehrer, 2023. "State Aid, R&D, and the Digital Content of Trade," wiiw Working Papers 237, The Vienna Institute for International Economic Studies, wiiw.
    • Handle: RePEc:wii:wpaper:237
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Factor content of trade; ICT capital; state aid; sectoral R&D capability;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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