State Aid Policy in the European Union

Tunali C. B., Fidrmuc J.

JCMS-JOURNAL OF COMMON MARKET STUDIES, cilt.53, sa.5, ss.1143-1162, 2015 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 53 Sayı: 5
  • Basım Tarihi: 2015
  • Doi Numarası: 10.1111/jcms.12247
  • Dergi Adı: JCMS-JOURNAL OF COMMON MARKET STUDIES
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.1143-1162
  • Anahtar Kelimeler: European Union, state aid, Solow model, growth, investment, INDUSTRIAL-POLICY, ROOT TESTS, PANEL-DATA
  • İstanbul Üniversitesi Adresli: Evet

Özet

Industrial policy is an important tool of economic policy-making, and this has been the case especially since the onset of the current global financial crisis in 2008. However, only relatively few empirical studies consider the macroeconomic effects of industrial policy, especially for European Union countries. In this study we investigate the effect of state aid policy on economic growth and investment, using a panel data set which covers 27 European Union countries over the period 1992-2011. Our results suggest that state aid policy is not an effective tool to achieve higher economic growth and investment rates.