How Much Do Trading Partners Matter for Austria’s Competitiveness and Export Performance?

Philipp Heimberger

No 435, wiiw Research Reports from The Vienna Institute for International Economic Studies, wiiw

Abstract: Based on a panel data set for 38 European countries over the period 1995-2014 and by using the definition of ’foundational competitiveness’, which we operationalise as GDP per working-age individual at PPP, this paper analyses how much trading partners matter for the national competitiveness of European countries. Results based on a growth regression framework show that higher growth of trading partners’ competitiveness has a positive impact on the growth of national competitiveness. We find evidence that there are diminishing national returns to increasingly competitive trading partners, but we cannot find strong evidence for a lock-in effect of Austria with the CESEE region. Furthermore, regression results on the determinants of the Austrian bilateral export market shares with European trading partners over 1995-2016 provide evidence that Austria’s export performance is sensitive to changes in its trading partners’ business cycle position, but not more sensitive than that for other selected eurozone countries.

Keywords: competitiveness; export performance; exports; trade; Austria; Europe (search for similar items in EconPapers)
JEL-codes: F14 L60 L80 (search for similar items in EconPapers)
Pages: 27 pages including 5 Tables and 6 Figures
Date: 2018-11
New Economics Papers: this item is included in nep-eec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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