This paper assesses the effectiveness of vertical industrial policies within the EU. Vertical industrial policy is defined as government support for specific firms or industries (picking winners or supporting losers) and measured by state aid granted by Member States to the manufacturing...

Large-scale business subsidies tied to national industrial development promotion programmes are notoriously difficult to study and are often inseparable from the political economy of large government programmes. We use the Tunisian national firm registry panel database, data on treated firms,...