Determinants of state aid to firms: the case of the European automotive industry

Marcella Nicolini, Carlo Scarpa and Paola Valbonesi

Industrial and Corporate Change, 2017, vol. 26, issue 3, 399-420

Abstract: Using an original database for the 1992–2008 period, we investigate the determinants of state aid to the automotive industry in the European Union (EU). We find evidence that EU policies have been effective in reducing state aid and re-orienting it toward horizontal objectives. However, national politics still have considerable relevance. During election years, governments are more generous, and this is particularly true in EU countries with proportional representation. Finally, a strategic game between countries seems to take place, whereby a country’s decision to grant aid seems to be responsive to aid previously granted by other member states.

JEL-codes: H25 H50 L52 L62 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1093/icc/dtw023 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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:oup:indcch:v:26:y:2017:i:3:p:399-420.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Industrial and Corporate Change is currently edited by Josef Chytry

More articles in Industrial and Corporate Change from Oxford University Press and the Associazione ICC Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press (joanna.bergh@oup.com).