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

Chiara Castelli (), Dario Guarascio, Stefan Jestl and Robert Stehrer
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Chiara Castelli: The Vienna Institute for International Economic Studies, wiiw, https://wiiw.ac.at/chiara-castelli-s-1952.html

No 237, wiiw Working Papers from 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.

Keywords: Factor content of trade; ICT capital; state aid; sectoral R&D capability (search for similar items in EconPapers)
JEL-codes: F14 O30 (search for similar items in EconPapers)
Pages: 19 pages including 7 Tables and 1 Figure
Date: 2023-11
New Economics Papers: this item is included in nep-ict, nep-ino and nep-int
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