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Michael Polemis and Thanasis Stengos
 
''The impact of state aid on economic growth''
( 2020, Vol. 40 No.2 )
 
 
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
JEL: C2 - Single Equation Models; Single Variables: General
L5 - Regulation and Industrial Policy: General
 
Manuscript Received : Nov 26 2019 Manuscript Accepted : Apr 29 2020

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