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Article
Determinants of State Aids to Firms: The case of the European Automotive Industry
Industrial and Corporate Change (2016)
  • Paola Valbonesi
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-orientating 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.
Keywords
  • automotive industry,
  • state aid to business,
  • EU competition policy
Publication Date
Spring May 13, 2016
DOI
DOI: 10.1093/icc/dtw023
Citation Information
Paola Valbonesi. "Determinants of State Aids to Firms: The case of the European Automotive Industry" Industrial and Corporate Change (2016)
Available at: http://works.bepress.com/paola_valbonesi/46/