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2014•RePEc: Research Papers in EconomicsRequires access

STATE AID AND REAL SECTOR OF ECONOMY IN THE LATEST GLOBAL ECONOMIC CRISIS

Stanisiæ Stojanoviæ

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Abstract

The purpose of this paper is to examine the role of state aid as a tool of state action in the last global economic crisis. The aim of the paper is to evaluate the extent and effects of anti-crisis state aid in the real sector of the economy. The effectiveness of the use of state aid as an instrument of crisis response and an instrument of revival of activity in the real sector is assessed based on the research. There is an intention to lower the level of state aid in a normal business and economic conditions, with the aim that its uncontrolled granting would not distort competition in the market. But, state aid has been used in increasing volume and as an important anti-crisis instrument during the latest global economic crisis. The paper evaluates the effect of this compromise.

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What this paper is about

The purpose of this paper is to examine the role of state aid as a tool of state action in the last global economic crisis. The aim of the paper is to evaluate the extent and effects of anti-crisis state aid in the real sector of the economy. The effectiveness of the use of state aid as an instrument of crisis response and an instrument of revival of activity in the real sector is assessed based on the research. There is an intention to lower the level of state aid in a normal business and economic conditions, with the aim that its uncontrolled granting would not distort competition in the market. But, state aid has been used in increasing volume and as an important anti-crisis instrument during the latest global economic crisis. The paper evaluates the effect of this compromise.

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Available abstract

The purpose of this paper is to examine the role of state aid as a tool of state action in the last global economic crisis. The aim of the paper is to evaluate the extent and effects of anti-crisis state aid in the real sector of the economy. The effectiveness of the use of state aid as an instrument of crisis response and an instrument of revival of activity in the real sector is assessed based on the research. There is an intention to lower the level of state aid in a normal business and economic conditions, with the aim that its uncontrolled granting would not distort competition in the market. But, state aid has been used in increasing volume and as an important anti-crisis instrument during the latest global economic crisis. The paper evaluates the effect of this compromise.

Key concepts: State (computer science), Compromise, Competition (biology), Real economy, Economic sector, Business sector, Economics, Business

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