THE SUBSIDIES – AN INSTRUMENT OF TRADE POLICY.CASE STUDY: THE BOEING-AIRBUS “WAR”

Mihaela Rovinaru and Larisa Pop
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Mihaela Rovinaru: “Babes-Bolyai” University, Cluj-Napoca, Romania
Larisa Pop: “Babes-Bolyai” University, Cluj-Napoca, Romania

Studies in Business and Economics, 2014, vol. 9, issue 3, 154-167

Abstract: For decades, the problem of governmental intervention on the markets provoked significant debates, representing even nowadays a controversial matter. A prevailing form of intervention is represented by subsidies. Although subsidies are regularly used by less-developed countries to stimulate exports, they are not forgotten by the advanced economies. From several examples of controversies generated by subsidy use, we examine in this paper “The Boeing-Airbus war”. For a decade, US and EU are accusing each other of “helping” the aircraft producers through governmental funds. We try to see who is right, what are the arguments, and if there will be a winner.

Keywords: international trade policy; governmental intervention; subsidies; aircraft industry (search for similar items in EconPapers)
Date: 2014
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