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Austria 2025 – Austria's Competitiveness and Export Potentials in Selected Markets

Elisabeth Christen (), Sandra Bilek-Steindl, Christian Glocker and Harald Oberhofer ()
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Christian Glocker: WIFO

in WIFO Studies from WIFO

Abstract: Given the strong focus of Austria's trade relations on the Single European Market this study analyses the trade potentials for Austrian exporters in 55 selected economies outside the EU and EFTA. Specifically, the study examines the macroeconomic environments and medium-term growth prospects for selected regions by concentrating on a variety of relevant future import demand shaping characteristics. For the empirical assessment of Austrian export potentials in overseas economies, the analysis augments the standard gravity model for bilateral trade in goods and services with supply-side and competitiveness-enhancing (policy) measures available for all OECD members. In particular, the empirical model focuses on the export effects of R&D expenditures, the funding for tertiary education as well as sustainable energy consumption. Assuming that Austria could catch-up to the average of the Scandinavian countries (Denmark, Finland, Sweden) in these three indicators, the results from alternative scenario analyses suggest positive export effects from all these different supply-side affecting variables. In quantitative terms the largest export gains are identified for the Industrial Countries in Overseas followed by the BRICS economies. These findings are additionally supported by solid growth prospects for these country groups.

Date: 2016 Written 2016-12-02
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Journal Article: Austria 2025 – Austria's Competitiveness and Export Potentials in Selected Markets (2017) Downloads
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