STATE AID POLICY BETWEEN COMPETITION AND ECONOMIC GROWTH: THE IMPACT OF STATE AID TO R&D ON GDP IN THE EU MEMBER STATES

Nicolae Bacila
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Nicolae Bacila: Babes-Bolyai University, Cluj Napoca

Revista Economica, 2012, vol. Supplement, issue 1, 86-94

Abstract: The paper focuses on the analysis of the relationship between state aid to R&D and economic growth, measured by GDP level, providing empirical evidence of a correlation between these variables. Using a methodology which combines the regression technique and Granger causality, we found that GDP represents a significant causal determinant of state aid, while the correlation the variables considered is positive and statistically significant, suggesting that, in spite of disparities between Member States, government support through state aid to R&D has evolved from maintaining undistorted competition to the possibility to act as an incentive for the economic growth in the EU.

Keywords: state aid policy; R&D; economic growth; technological change; market failure (search for similar items in EconPapers)
JEL-codes: C22 F36 H23 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:blg:reveco:v:supplement:y:2012:i:1:p:86-94

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