Principal Dr. Peter Davis and Senior Associate Gerhard Dijkstra coauthored a recent European Competition and Regulatory Law Review (CoRe) article on the economic analysis that will be required in foreign subsidy reviews. Specifically, the authors examine the European Commission’s new Foreign Subsidies Regulation (FSR) and the list of potential indicators that can be used to assess the impact of subsidies.

To consider the proper role of the FSR indicators, the authors consider four potential theories of harm to distinguish indicators that could be relevant from those that are not. Along with detailing the four different theories of harm, they also discuss empirical evidence relating to the prevalence of foreign subsidies in different sectors of the EU economy. The authors also detail an economist’s approach to establishing causality and effects within the context of a given theory of harm.

The full article, “Theories of Harm in the Implementation of the Foreign Subsidies Regulation,” is available below (behind paywall).

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