Die Gestaltung der Wirtschaftsstruktur durch das Land Brandenburg - Eine kritische Analyse der Subventionszahlungen für die CargoLifter AG

The Government of the State of Brandenburg subsidised the company CargoLifter AG on the basis of the „new industrial policy“. Following this policy the government supports individually selected industries or companies. The „new industrial policy“ is supported by the strategic trade policy, which states that subsidising domestic companies in incomplete markets with declining average costs and high entry barriers can increase the welfare level of a particular region. The following article provides an analysis whether in the case of Cargo-Lifter the Government of the State of Brandenburg pursued an effective strategic trade policy. Moreover the article investigates particular problems of the strategic trade policy.

02. November 2006

Authors Mirko Titze

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