|
| |
| 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 |
|
