 The quantitative impacts of subsidies on steel firms: An econometric analysis of the impact of subsidies on steel firms’ financial performance and crude steelmaking capacityOecd No 167, OECD Science, Technology and Industry Policy Papers from OECD Publishing Abstract: Non-OECD economies are using seven times more grants per unit of steelmaking capacity for their steel industry than OECD countries in 2021, and increased tenfold the amount of grants per unit of capacity while tripling amounts of below-market borrowings from 2005 to 2021. Identical subsidies can have very different impacts on recipient firms’ performance and capacity depending on whether they operate in an OECD country or not: grants provided to steel firms in non-OECD economies are associated with large capacity expansions, with each additional USD 1 million in grants correlated with capacity increases of about 7 000 to 11 000 metric tonnes, whereas no significant impact was found for OECD countries. This may be due to different subsidisation programme frameworks and different degrees of enforceability of subsidy use. This emphasises the need for dialogue in global fora on best practices on subsidy frameworks to address the most distortive subsidies urgently. Keywords: Excess capacity; Financial records; Firm-level database; Government programme; Government support; Steel; Subsidies (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:oec:stiaac:167-en Access Statistics for this paper More papers in OECD Science, Technology and Industry Policy Papers from OECD Publishing Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.