The impact of state aid on economic growth

Michael Polemis () and Thanasis Stengos

Economics Bulletin, 2020, vol. 40, issue 2, 1083-1090

Abstract: We shed light on the nature of the relationship between state aid and economic growth for a panel of 28 EU countries over the period 2002-2017. We show that this relationship is statistically significant and negative. A 10% increase (decrease) in the state aid from the sample mean decreases (increases) annual real per capita growth by 1.6% on average suggesting that countries relying solely on state aid will perform worse.

Keywords: Economic Growth; State aid; Competition (search for similar items in EconPapers)
JEL-codes: C2 L5 (search for similar items in EconPapers)
Date: 2020-04-29
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Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-19-01045

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