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Austria’s Manufacturing Competitiveness

Author

Listed:
  • Christian Ragacs

    (Oesterreichische Nationalbank, Economic Analysis Division)

  • Beate Resch

    (Oesterreichische Nationalbank)

  • Klaus Vondra

    (Oesterreichische Nationalbank, Economic Analysis Division)

Abstract

This study discusses Austria’s manufacturing competitiveness and its influence on changes in the export market shares of domestic manufacturers. We first analyze price competitiveness over time and then conduct a constant-market-shares analysis in order to attribute changes in the export market shares of domestic manufacturers to their competitiveness on the one hand and international demand patterns on the other. Austria’s manufacturing industry seized the opportunity to expand to the east when the markets in Central, Eastern and Southeastern Europe (CESEE) opened up. Against this backdrop, domestic manufacturers were able to improve their price competitiveness between 1995 and 2004. They also gained export market shares from 2000 onward but lost some ground in 2005 and 2006. Since then, market shares and price competitiveness have remained broadly unchanged, which means that Austria has in fact done better than most other euro area countries. By historical comparison, the impact of the financial and economic crisis on Austrian manufacturers’ export market shares and their competitiveness remained limited.

Suggested Citation

  • Christian Ragacs & Beate Resch & Klaus Vondra, 2011. "Austria’s Manufacturing Competitiveness," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 35-61.
    • Handle: RePEc:onb:oenbmp:y:2011:i:3:b:3
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    References listed on IDEAS

    as
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    Cited by:

    1. Sebastian Essl & Alfred Stiglbauer, 2011. "Prevention and Correction of Macroeconomic Imbalances: the Excessive Imbalances Procedure," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 99-113.
    2. Klaus Vondra, 2014. "Austria Holds Intra-EU Export Market Shares almost Constant despite Difficult Economic Environment," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 54-74.

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    More about this item

    Keywords

    international competitiveness; Austrian manufacturing; CMSA;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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