Evaluation of State aid and its created value for disabled people in Lithuania
Abstract
Countries facing social issues related to the disabled apply various measures to solve them, including State aid. However, the application of these measures does not always enable them to achieve the goals of state policy or to improve indicators such as the integration of the disabled into the labor market and reduction of social exclusion. In order to evaluate the effectiveness of State aid usage and influence on the implementation of disabled employment policies, this research develops a set of social and economic indicators to reflect the examined issue, allow for the assessment of the situation of the target group, and envisage areas of improvement. To evaluate the impact of State aid on the selected indicators, a simple linear regression analysis is performed. According to our evaluations, we establish that in order for the government to solve problems of poverty by employing disabled people, questions of financial capacity as well as the effectiveness of allowances for the disabled should be addressed. The expected effects of this measure are a growing number of employed disabled people and reduction of poverty and social exclusion among disabled people.
Keyword : State aid, employment of disabled persons, social inclusion, regression analysis, social indicators, economic indicators
How to Cite
Girlevičienė, L., & Kvietkauskienė , A. (2021). Evaluation of State aid and its created value for disabled people in Lithuania . Journal of Business Economics and Management, 22(4), 905-922. https://doi.org/10.3846/jbem.2021.14471
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Brandtner, B., & Vidoni, D. (2018). State Aid evaluation. State of play and ways forward. European State Aid Law Quarterly, 17(4), 475–482. https://doi.org/10.21552/estal/2018/4/4
Briglauer, W., Durr, N. S., Falck, O., & Huschelrath, K. (2019). Does state aid for broadband deployment in rural areas close the digital and economic divide? Information Economics and Policy, 46, 68–85. https://doi.org/10.1016/j.infoecopol.2019.01.001
Buelens, C., Gaelle, G., Roderick M., & Matthew, J. (2007). European economy. Economic papers 286: The economic analysis of state aid: Some open questions. Directorate-General for Economic and Financial Affairs.
Čekanavičius, V., & Murauskas, G. (2014). Taikomoji regresinė analizė socialiniuose tyrimuose. Vilniaus universiteto leidykla.
Colomb, C., & Santinha, G. (2014). European Union competition policy and the European territorial cohesion agenda: An impossible reconciliation? State aid rules and public service liberalization through the European spatial planning lens. European Planning Studies, 22(3), 459–480. https://doi.org/10.1080/09654313.2012.744384
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Crocioni, P. (2006). Can State aid policy become more economic friendly? World Competition, 29(1), 89–108.
De Cock, W. (2018). Economics of State aid control: Where law and economics meet. European State Aid Law Quarterly, 17(4), 565–569. https://doi.org/10.21552/estal/2018/4/15
Dietrich, S. (2015). Donor political economies and the pursuit of aid effectiveness. International Organization, 70(1), 65–102. https://doi.org/10.1017/S0020818315000302
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Finke, D. (2020). At loggerheads over state aid: Why the Commission rejects aid and governments comply. European Union Politics, 21(3), 474–496. https://doi.org/10.1177/1465116520916248
Fremstad, S. (2009, September). Half in Ten: Why taking disability into account is essential to reducing income poverty and expanding economic inclusion. Center for Economic & Policy Research. https://www.cepr.net/documents/publications/poverty-disability-2009-09.pdf
Friederiszick, H., Głowicka, E., Gratz, L., Lünenbürger, S., & Rosenfeld, A. (2018). Ex post state aid evaluation in environmental aid. European State Aid Law Quarterly, 17(4), 509–524. https://doi.org/10.21552/estal/2018/4/7
Friederiszick, H. W., Röller, L.-H., & Verouden, V. (2006). European state aid control: An economic framework. Handbook of Antitrust Economics, 625–669. 712. https://scholar.google.com/citations?user=w_yScK4AAAAJ&hl=en
Gannon, B., & Nolan, B. (2007). The impact of disability transitions on social inclusion. Social Science and Medicine, 64(7), 1425–1437. https://doi.org/10.1016/j.socscimed.2006.11.021
Ginevičius, R., Podvezko, V., & Bruzge, Š. (2008). Evaluating the effect of state aid to business by multicriteria methods. Journal of Business Economics and Management, 9(3), 167–180. https://doi.org/10.3846/1611-1699.2008.9.167-180
Haucap, J., & Schwalbe, U. (2011). Economic principles of state aid control (Discussion Paper No. 17). Düsseldorf Institute for Competition Economics (DICE). https://www.dice.hhu.de/fileadmin/redaktion/Fakultaeten/Wirtschaftswissenschaftliche_Fakultaet/DICE/Discussion_Paper/017_Haucap_Schwalbe.pdf
Iozia, E. M. (2016). Europos ekonomikos ir socialinių reikalų komiteto nuomonė dėl „Valstybės pagalbos įmonėms. Ar ji veiksminga ir efektyvi?” (Nuomonė savo iniciatyva). Europos Sąjungos oficialusis leidinys.
Kassim, H., & Lyons, B. (2013). The new political economy of EU state aid policy. Journal of Industry, Competition and Trade, 13(1), 1–21. https://doi.org/10.1007/s10842-012-0142-9
Kim, K. M., Kim, D., K., Shin, R. Y., & Yoo, D. C. (2016). Social exclusion of people with disabilities in Korea. Social Indicators Research, 129(2), 761–773. https://doi.org/10.1007/s11205-015-1123-2
Kim, S., & Rhee, S. (2018). Measuring the effects of employment protection policies: Theory and evidence from the Americans with Disabilities Act. Labour Economics, 54, 116–134. https://doi.org/10.1016/j.labeco.2018.08.001
Lagzdina, D., & Kristaps, G. (2018). Baltics. State Aid to airport infrastructure in core TEN-T airports of three Baltic States and how they fit in limitations established by State Aid rules. European State Aid Law Quarterly, 17(1), 119–123. https://doi.org/10.21552/estal/2018/1/15
Lopez, J. J. P. (2018). Spain. Spanish supreme court rejects compensation to companies subject to State Aid recovery. European State Aid Law Quarterly, 17(4), 562–564.
Martin, S., & Valbonesi. P. (2000). State aid in context. In G. Galli & J. Pelkmans (Eds.), Regulatory reform and competitiveness in Europe (pp. 176–201). Edward Elgar Publishing Limited.
Mazziotta, M., Pallara, A., & Solipaca, A. (2019). Using a composite index to measure social inclusion of people with disabilities. In A. Bianco, P. Conigliaro, & M. Gnaldi (Eds.), Italian studies on quality of life (pp. 27–45). Springer International Publishing. https://doi.org/10.1007/978-3-030-06022-0_3
Ministry of Social Security and Labour. (2018). Disability statistics and dynamics. https://socmin.lrv.lt/lt/veiklos-sritys/socialine-integracija/neigaliuju-socialine-integracija/statistika-2
Mussida, C., & Parisi, M. L. (2019). Households at risk of severe material deprivation: The cases of Italy and Spain (pp. 1–28). DISCE – Quaderni del Dipartimento di Scienze Economiche e Sociali dises142, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
Nicolaides, P. (2018a). Is there a need for a new concept of “Ex-ante Creditor”? European State Aid Law Quarterly, 17(3), 368–374. https://doi.org/10.21552/estal/2018/3/6
Nicolaides, P. (2018b). The compatibility of State Aid with the internal market. European State Aid Law Quarterly, 17(4), 534–545. https://doi.org/10.21552/estal/2018/4/9
Nicolaides, P., & Rusu, I. E. (2010). The finanical crisis and state aid. The Antitrust Bulletin, 55(4), 759–783. https://doi.org/10.1177/0003603X1005500404
Pabedinskaitė, A. (2009). Kiekybiniai sprendimų metodai. I dalis. Koreliacinė regresinė analizė. prognozavimas. Vilniaus Gedimino technikos universitetas. https://doi.org/10.3846/791-S
Parodi, G., & Sciulli, D. (2019). Disability and social exclusion in Italian Households. Social Indicators Research, 144(2), 767–784. https://doi.org/10.1007/s11205-019-02068-1
Pisapia, A. (2014). The role of EU State Aid policy in enhancing the development of the industrial sector. Privredna kretanja i ekonomska politika, 23(2), 45–65.
Quigley, C. (2009). European state aid law and policy. Hart Publishing.
Radukić, S., & Vučetić, V. (2019). Comparative analysis of state aid and competitiveness of the Republic of Serbia and the neighbouring countries. Journal of Central Banking Theory and Practice, 8(3), 21–38. https://doi.org/10.2478/jcbtp-2019-0022
Reger, A., & Veljanovski, C. (2020). The economics used in assessing state aid cases. https://doi.org/10.2139/ssrn.3518158
Robins, N. (2018). Ex post State aid analysis: First impressions. European State Aid Law Quarterly, 17(4), 473–474. https://doi.org/10.21552/estal/2018/4/3
She, P., & Livermore, G. A. (2009). Long-term poverty and disability among working-age adults. Journal of Disability Policy Studies, 19(4), 244–256. https://doi.org/10.1177/1044207308314954
Stanikūnas, R. A. (2009). Konkurencijos politika: teorija ir praktika. Leidykla TEV.
Staškutė, I. (2014). Su sveikata susijusios gyvenimo kokybės samprata, stebėsenos ir vertinimo metodai bei reikšmė sveikatos politikoje. Health Policy and Management, 1(6), 7–19. https://doi.org/10.13165/SPV-14-1-6-01
Tobias, E. I., & Mukhopadhyay, S. (2017). Disability and social exclusion: Experiences of individuals with visual impairments in the Oshikoto and Oshana regions of Namibia. Psychology and Developing Societies, 29(1), 22–43. https://doi.org/10.1177/0971333616689203
Tunali, Ç. B., & Fidrmuc, J. (2015). State Aid policy in the European Union. Journal of Common Market Studies, 53(5), 1143–1162. https://doi.org/10.1111/jcms.12247
United Nations. (2010). United Nations Convention on the rights of persons with disabilities and its optional protocol. https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/TAIS.335882
World Health Organization. (2018). International Classification of Functioning, Disability and Health (ICF).
World Health Organization & World Bank. (2011). World report on disability 2011. World Health Organization. https://apps.who.int/iris/handle/10665/44575
Balvočiūtė, R. (2019). Ar socialinės išmokos mažina gyventojų skurdą ? Poveikio lyginamoji analizė senosiose ir Rytų Europos šalyse. Socialinė teorija, empirija, politika ir praktika, 18, 23–45.
Bartniczak, B. (2013). Integrated assessment framework as a tool for identifying the type of state aid. Economic and Environmental Studies, 13(1), 23–33.
Bilevičienė, T., & Jonušauskas, S. (2011). Statistinių metodų taikymas rinkos tyrimuose. Mykolo Riomerio universitetas.
Bonanno, G., Chies, L., & Podrecca, E. (2019). Poverty and material deprivation dynamic in Italy (Reasearch paper series, No. 2). DEAMS. https://www.openstarts.units.it/bitstream/10077/29162/1/DEAMS_RP_2019_2_BonannoChiesPodrecca.pdf
Bourreau, M., Feasey, R., & Nicolle, A. (2020). Assessing fifteen years of State Aid for broadband in the European Union: A quantitative analysis. Telecommunications Policy, 44(7), 101974. https://doi.org/10.1016/j.telpol.2020.101974
Brandtner, B., & Vidoni, D. (2018). State Aid evaluation. State of play and ways forward. European State Aid Law Quarterly, 17(4), 475–482. https://doi.org/10.21552/estal/2018/4/4
Briglauer, W., Durr, N. S., Falck, O., & Huschelrath, K. (2019). Does state aid for broadband deployment in rural areas close the digital and economic divide? Information Economics and Policy, 46, 68–85. https://doi.org/10.1016/j.infoecopol.2019.01.001
Buelens, C., Gaelle, G., Roderick M., & Matthew, J. (2007). European economy. Economic papers 286: The economic analysis of state aid: Some open questions. Directorate-General for Economic and Financial Affairs.
Čekanavičius, V., & Murauskas, G. (2014). Taikomoji regresinė analizė socialiniuose tyrimuose. Vilniaus universiteto leidykla.
Colomb, C., & Santinha, G. (2014). European Union competition policy and the European territorial cohesion agenda: An impossible reconciliation? State aid rules and public service liberalization through the European spatial planning lens. European Planning Studies, 22(3), 459–480. https://doi.org/10.1080/09654313.2012.744384
Consolidated version of the Treaty on European Union and the Treaty on the Functioning of the European Union. (2012). Official Journal, C 326, 26/10/2012 p. 0001–0390.
Crocioni, P. (2006). Can State aid policy become more economic friendly? World Competition, 29(1), 89–108.
De Cock, W. (2018). Economics of State aid control: Where law and economics meet. European State Aid Law Quarterly, 17(4), 565–569. https://doi.org/10.21552/estal/2018/4/15
Dietrich, S. (2015). Donor political economies and the pursuit of aid effectiveness. International Organization, 70(1), 65–102. https://doi.org/10.1017/S0020818315000302
Employment service. (2018). Changes in the structure of the unemployed. https://uzt.lt/darbo-rinka/bedarbiu-strukturos-pokyciai/
European Commission. (2014). Commission staff working document. Common methodology for State aid evaluation. 28.5.2014. SWD(2014) 179 final. Brussels. https://ec.europa.eu/transparency/regdoc/rep/10102/2014/EN/10102-2014-179-EN-F1-1.PDF
European Commission. (2010a). EUROPE 2020. A strategy for smart, sustainable and inclusive growth. COM/2010/2020 final. Brussels.
European Commission. (2010b). European disability strategy 2010–2020. https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM%3A2010%3A0636%3AFIN%3Aen%3APDF
European Commission. (2019a). Commission staff working document. Country report Lithuania 2019. 27.2.2019 SWD(2019) 1014 final. Brussels.
European Commission. (2019b). State aid scoreboard. European Commission – Directorate-General for Competition (DG COMP). https://webgate.ec.europa.eu/comp/redisstat/databrowser/explore/all/COMP_TOP_2019?lang=en &display=card&sort=category
European Council. (2017). Council of Europe strategy for disability 2017–2023. https://rm.coe.int/16806fe7d4
Ferri, D. (2020). The role of EU State Aid law as a “Risk Management Tool” in the COVID-19 crisis. European Journal of Risk Regulation, (February), 1–20. https://doi.org/10.1017/err.2020.71
Finke, D. (2020). At loggerheads over state aid: Why the Commission rejects aid and governments comply. European Union Politics, 21(3), 474–496. https://doi.org/10.1177/1465116520916248
Fremstad, S. (2009, September). Half in Ten: Why taking disability into account is essential to reducing income poverty and expanding economic inclusion. Center for Economic & Policy Research. https://www.cepr.net/documents/publications/poverty-disability-2009-09.pdf
Friederiszick, H., Głowicka, E., Gratz, L., Lünenbürger, S., & Rosenfeld, A. (2018). Ex post state aid evaluation in environmental aid. European State Aid Law Quarterly, 17(4), 509–524. https://doi.org/10.21552/estal/2018/4/7
Friederiszick, H. W., Röller, L.-H., & Verouden, V. (2006). European state aid control: An economic framework. Handbook of Antitrust Economics, 625–669. 712. https://scholar.google.com/citations?user=w_yScK4AAAAJ&hl=en
Gannon, B., & Nolan, B. (2007). The impact of disability transitions on social inclusion. Social Science and Medicine, 64(7), 1425–1437. https://doi.org/10.1016/j.socscimed.2006.11.021
Ginevičius, R., Podvezko, V., & Bruzge, Š. (2008). Evaluating the effect of state aid to business by multicriteria methods. Journal of Business Economics and Management, 9(3), 167–180. https://doi.org/10.3846/1611-1699.2008.9.167-180
Haucap, J., & Schwalbe, U. (2011). Economic principles of state aid control (Discussion Paper No. 17). Düsseldorf Institute for Competition Economics (DICE). https://www.dice.hhu.de/fileadmin/redaktion/Fakultaeten/Wirtschaftswissenschaftliche_Fakultaet/DICE/Discussion_Paper/017_Haucap_Schwalbe.pdf
Iozia, E. M. (2016). Europos ekonomikos ir socialinių reikalų komiteto nuomonė dėl „Valstybės pagalbos įmonėms. Ar ji veiksminga ir efektyvi?” (Nuomonė savo iniciatyva). Europos Sąjungos oficialusis leidinys.
Kassim, H., & Lyons, B. (2013). The new political economy of EU state aid policy. Journal of Industry, Competition and Trade, 13(1), 1–21. https://doi.org/10.1007/s10842-012-0142-9
Kim, K. M., Kim, D., K., Shin, R. Y., & Yoo, D. C. (2016). Social exclusion of people with disabilities in Korea. Social Indicators Research, 129(2), 761–773. https://doi.org/10.1007/s11205-015-1123-2
Kim, S., & Rhee, S. (2018). Measuring the effects of employment protection policies: Theory and evidence from the Americans with Disabilities Act. Labour Economics, 54, 116–134. https://doi.org/10.1016/j.labeco.2018.08.001
Lagzdina, D., & Kristaps, G. (2018). Baltics. State Aid to airport infrastructure in core TEN-T airports of three Baltic States and how they fit in limitations established by State Aid rules. European State Aid Law Quarterly, 17(1), 119–123. https://doi.org/10.21552/estal/2018/1/15
Lopez, J. J. P. (2018). Spain. Spanish supreme court rejects compensation to companies subject to State Aid recovery. European State Aid Law Quarterly, 17(4), 562–564.
Martin, S., & Valbonesi. P. (2000). State aid in context. In G. Galli & J. Pelkmans (Eds.), Regulatory reform and competitiveness in Europe (pp. 176–201). Edward Elgar Publishing Limited.
Mazziotta, M., Pallara, A., & Solipaca, A. (2019). Using a composite index to measure social inclusion of people with disabilities. In A. Bianco, P. Conigliaro, & M. Gnaldi (Eds.), Italian studies on quality of life (pp. 27–45). Springer International Publishing. https://doi.org/10.1007/978-3-030-06022-0_3
Ministry of Social Security and Labour. (2018). Disability statistics and dynamics. https://socmin.lrv.lt/lt/veiklos-sritys/socialine-integracija/neigaliuju-socialine-integracija/statistika-2
Mussida, C., & Parisi, M. L. (2019). Households at risk of severe material deprivation: The cases of Italy and Spain (pp. 1–28). DISCE – Quaderni del Dipartimento di Scienze Economiche e Sociali dises142, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
Nicolaides, P. (2018a). Is there a need for a new concept of “Ex-ante Creditor”? European State Aid Law Quarterly, 17(3), 368–374. https://doi.org/10.21552/estal/2018/3/6
Nicolaides, P. (2018b). The compatibility of State Aid with the internal market. European State Aid Law Quarterly, 17(4), 534–545. https://doi.org/10.21552/estal/2018/4/9
Nicolaides, P., & Rusu, I. E. (2010). The finanical crisis and state aid. The Antitrust Bulletin, 55(4), 759–783. https://doi.org/10.1177/0003603X1005500404
Pabedinskaitė, A. (2009). Kiekybiniai sprendimų metodai. I dalis. Koreliacinė regresinė analizė. prognozavimas. Vilniaus Gedimino technikos universitetas. https://doi.org/10.3846/791-S
Parodi, G., & Sciulli, D. (2019). Disability and social exclusion in Italian Households. Social Indicators Research, 144(2), 767–784. https://doi.org/10.1007/s11205-019-02068-1
Pisapia, A. (2014). The role of EU State Aid policy in enhancing the development of the industrial sector. Privredna kretanja i ekonomska politika, 23(2), 45–65.
Quigley, C. (2009). European state aid law and policy. Hart Publishing.
Radukić, S., & Vučetić, V. (2019). Comparative analysis of state aid and competitiveness of the Republic of Serbia and the neighbouring countries. Journal of Central Banking Theory and Practice, 8(3), 21–38. https://doi.org/10.2478/jcbtp-2019-0022
Reger, A., & Veljanovski, C. (2020). The economics used in assessing state aid cases. https://doi.org/10.2139/ssrn.3518158
Robins, N. (2018). Ex post State aid analysis: First impressions. European State Aid Law Quarterly, 17(4), 473–474. https://doi.org/10.21552/estal/2018/4/3
She, P., & Livermore, G. A. (2009). Long-term poverty and disability among working-age adults. Journal of Disability Policy Studies, 19(4), 244–256. https://doi.org/10.1177/1044207308314954
Stanikūnas, R. A. (2009). Konkurencijos politika: teorija ir praktika. Leidykla TEV.
Staškutė, I. (2014). Su sveikata susijusios gyvenimo kokybės samprata, stebėsenos ir vertinimo metodai bei reikšmė sveikatos politikoje. Health Policy and Management, 1(6), 7–19. https://doi.org/10.13165/SPV-14-1-6-01
Tobias, E. I., & Mukhopadhyay, S. (2017). Disability and social exclusion: Experiences of individuals with visual impairments in the Oshikoto and Oshana regions of Namibia. Psychology and Developing Societies, 29(1), 22–43. https://doi.org/10.1177/0971333616689203
Tunali, Ç. B., & Fidrmuc, J. (2015). State Aid policy in the European Union. Journal of Common Market Studies, 53(5), 1143–1162. https://doi.org/10.1111/jcms.12247
United Nations. (2010). United Nations Convention on the rights of persons with disabilities and its optional protocol. https://e-seimas.lrs.lt/portal/legalAct/lt/TAD/TAIS.335882
World Health Organization. (2018). International Classification of Functioning, Disability and Health (ICF).
World Health Organization & World Bank. (2011). World report on disability 2011. World Health Organization. https://apps.who.int/iris/handle/10665/44575