State Aid and Export Competitiveness in the EU

Roman Stöllinger and Mario Holzner

Journal of Industry, Competition and Trade, 2017, vol. 17, issue 2, No 4, 203-236

Abstract: Abstract Despite the proclaimed return of industrial policy state aid provided by EU Member States is at historically low levels. This fact is at least partly explained by the unique institutional arrangement in the EU which empowers the European Commission to monitor and restrict state aid activities of Member States. Making use of European state aid statistics over the period 1995–2011 we construct a measure for manufacturing state aid and estimate an expanded macro-economic export function to investigate the relationship between state aid for the manufacturing sector and Member States’ export performance. Since national governments can be expected to provide subsidies primarily to foster domestic value added we use value added exports as the export performance measure. Non-stationarity of the data confines us to investigating the short run relationships in which we only find limited evidence for a significant impact of state aid on manufacturing value added exports.

Keywords: Industrial policy; State aid; Value added exports; External competitiveness (search for similar items in EconPapers)
JEL-codes: F13 L52 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10842-016-0222-3 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: State Aid and Export Competitiveness in the EU (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jincot:v:17:y:2017:i:2:d:10.1007_s10842-016-0222-3

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/10842/PS2

DOI: 10.1007/s10842-016-0222-3

Access Statistics for this article

Journal of Industry, Competition and Trade is currently edited by Karl Aiginger, Marcel Canoy and Michael Peneder

More articles in Journal of Industry, Competition and Trade from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().