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How Does Economic Development in Eastern Europe Affect Austria's Regions? A Multiregional General Equilibrium Framework

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  • Johannes Bröcker
  • Martin Schneider

Abstract

The paper quantifies regional welfare effects arising from the increasing trade flows between Austria and its Eastern neighbors after the opening up of Eastern Europe. We calibrate a static multiregional Computable General Equilibrium (CGE) model with benchmark data from 1994 for Austria, subdivided into nine Federal Provinces. The regions are linked by trade flows with the four Eastern neighboring countries and with the rest of the world. We simulate the effects of the increase of trade interpenetration as observed between 1989 and 1999 in a comparative static analysis. Regional welfare effects under fixed and flexible wages are presented. We also compare national CGE results with estimates obtained in a simple partial equilibrium approach. Copyright 2002 Blackwell Publishers Inc.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Regional Science.

Volume (Year): 42 (2002)
Issue (Month): 2 ()
Pages: 257-285

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Handle: RePEc:bla:jregsc:v:42:y:2002:i:2:p:257-285

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Citations

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Cited by:
  1. De Almeida, Eduardo Simoes & Guilhoto, Joaquim, 2013. "O Custo De Transporte Como Barreira Ao Comércio Na Integração Econômica: O Caso Do Nordeste," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 146589, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
  2. Haddad, Eduardo A. & Hewings, Geoffrey J.D., 2005. "Market imperfections in a spatial economy: some experimental results," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 476-496, May.
  3. Martin Schneider, 1998. "A multiregional general equilibrium model of the Austrian economy: Effects of the catch-up process of the CEECs on the regional economy," ERSA conference papers ersa98p137, European Regional Science Association.
  4. Zhu, Xueqin & Van Ommeren, Jos & Rietveld, Piet, 2009. "Indirect benefits of infrastructure improvement in the case of an imperfect labor market," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 57-72, January.
  5. Eduardo A. Haddad & Jaime Bonet & Geoffrey. J.D.Hewings & Fernando S Perobelli, . "Spatial Aspects of Trade Liberalization in Colombia: A General Equilibrium Approach," Borradores de Economia 515, Banco de la Republica de Colombia.
  6. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Other Operational Studies 8083, The World Bank.
  7. Eduardo Simões de Almeida, 2004. "A Duplicação Da Rodovia Fernão Dias: Uma Análise De Equilíbrio Geral," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 130, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  8. Eduardo Simões de Almeida & Eduardo Amaral Haddad & Geoffrey John Dennis Hewings, 2003. "The Transport-Regional Equity Issue Revisited," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] e33, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  9. Mayerhofer, Peter, 2002. "Austrian border regions and eastern integration: A low competitiveness - high growth paradoxon," HWWA Discussion Papers 202, Hamburg Institute of International Economics (HWWA).
  10. Plassmann, Florenz, 2005. "The advantage of avoiding the Armington assumption in multi-region models," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 777-794, November.
  11. Jaime Bonet & Eduardo A. Haddad & Geoffrey J.D. Hewings & Fernando S. Perobelli, 2008. "Efectos regionales de una mayor liberación comercial en Colombia: Una estimación con el Modelo CEER," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 005004, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  12. Almeida, Eduardo Simões de & Guilhoto, Joaquim José Martins, 2010. "Is the truth out there? Avaliando as opções de integração econômica para o Brasil
    [Is the truth out there? Evaluating the economic integration options for Brazil]
    ," MPRA Paper 54443, University Library of Munich, Germany.
  13. Arne Melchior, 2009. "East-West Integration and the Economic Geography of Europe," CASE Network Studies and Analyses 0379, CASE-Center for Social and Economic Research.
  14. Jie Zhu & Ying Jin & Marcial Echenique, 2012. "Application of a new spatial computable general equilibrium model for assessing strategic transport and land use development options in London and surrounding regions," ERSA conference papers ersa12p931, European Regional Science Association.

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