Is higher competitiveness possible by subsidizing entrepreneurs?  The case of Slovakia

Jaroslav  Ďaďo; Ivan  Sedliačik

Published : 2015-12-14

Vol. 3 No. 4 (2015)

Is higher competitiveness possible by subsidizing entrepreneurs? The case of Slovakia

Jaroslav Ďaďo

Ivan Sedliačik

Abstract

This article deals with the competitiveness of allocating resources in a free market economy that is in contrast to bureaucratic allocation in the form of subsidies to entrepreneurs. We reviewed these two processes and made an evaluation of the results. By applying Ludwig von Mises’ theorem of economic calculation, it was demonstrated that governments rely on the subsidized entrepreneur’s market and believe it to be more competitive than classical market entities that are more successful in resources allocation based on free enterprise.

Keywords:

allocation of resources, competitiveness, subsidies

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Ďaďo, J. ., & Sedliačik, I. . (2015). Is higher competitiveness possible by subsidizing entrepreneurs? The case of Slovakia . Forum Scientiae Oeconomia, 3(4), 5–16. Retrieved from https://ojs.wsb.edu.pl/index.php/fso/article/view/240

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Jaroslav Ďaďo

Jaroslav.Dado@umb.sk

Affiliation:

Matej Bel University in Banská Bystrica, Slovakia

Ivan Sedliačik

ivan.sedliacik@umb.sk

Affiliation:

Matej Bel University in Banská Bystrica, Slovakia