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State Aid in the Enlarged European Union. An Overview

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  • Hölscher, Jens
  • Nulsch, Nicole
  • Stephan, Johannes

Abstract

In the early phase of transition that started with the 1990s, Central and Eastern European Countries pursued economic restructuring of the enterprise sector that involved massive injections of state support. Also foreign investment from the West and facilitation of the development of a market economy involved massive injections of state support. With their accession to the European Union (EU), levels and forms of state aid came under critical review by the European Commission. This inquiry investigates whether the integration of the new member states operates on a level playing field with respect to state aid. Quantitative and qualitative analysis is relied upon to answer this key, as well as other, related questions. Findings suggest that in recent years a level playing field across the EU has indeed emerged. State aid in the new EU member countries is rather handled more strictly than laxer compared to the 'old' EU countries.

Suggested Citation

  • Hölscher, Jens & Nulsch, Nicole & Stephan, Johannes, 2010. "State Aid in the Enlarged European Union. An Overview," IWH Discussion Papers 24/2010, Halle Institute for Economic Research (IWH).
    • Handle: RePEc:zbw:iwhdps:iwh-24-10
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    File URL: https://www.econstor.eu/bitstream/10419/45926/1/661573222.pdf
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    References listed on IDEAS

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    1. Lars-Hendrik Röller & Christian von Hirschhausen, 1996. "State Aid, Industrial Restructuring and Privatization in the New German Länder: Competition Policy with Case Studies of the Shipbuilding and Synthetic Fibres Industries," CIG Working Papers FS IV 96-13, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    2. Iraj Hashi & Darko Hajdukovic & Erjon Luci, 2005. "Can Government Policy Influence Industrial Competitiveness: Evidence from Poland and the Czech Republic," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 8(2), pages 1-22, November.
    3. Jens Hölscher & Johannes Stephan, 2009. "Competition and Antitrust Policy in the Enlarged European Union: A Level Playing Field?," Journal of Common Market Studies, Wiley Blackwell, vol. 47(4), pages 863-889, September.
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    6. Barbara J. Spencer & James A. Brander, 1983. "International R & D Rivalry and Industrial Strategy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 50(4), pages 707-722.
    7. Jens Hölscher & Johannes Stephan, 2004. "Competition Policy in Central Eastern Europe in the Light of EU Accession," Journal of Common Market Studies, Wiley Blackwell, vol. 42(2), pages 321-345, June.
    8. Gerda Falkner & Oliver Treib, 2008. "Three Worlds of Compliance or Four? The EU‐15 Compared to New Member States," Journal of Common Market Studies, Wiley Blackwell, vol. 46(2), pages 293-313, March.
    9. Erik S. Reinert & Rainer Kattel & Margit Suurna, 2009. "Industrial Restructuring and Innovation Policy in Central and Eastern Europe since 1990," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 23, TUT Ragnar Nurkse Department of Innovation and Governance.
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    Cited by:

    1. Nulsch, Nicole, 2014. "Is Subsidizing Companies in Difficulties an Optimal Policy? An Empirical Study on the Effectiveness of State Aid in the European Union," IWH Discussion Papers 9/2014, Halle Institute for Economic Research (IWH).
    2. Çiğdem Börke Tunali & Jan Fidrmuc, 2015. "State Aid Policy in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 53(5), pages 1143-1162, September.

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    More about this item

    Keywords

    Competition policy; economic transition; EU enlargement; state aid; Wettbewerbspolitik; ökonomische Transformation; EU-Osterweiterung; staatliche Beihilfen;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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