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Learning and Dynamic Comparative Advantage: Lessons from Austria's Post-war Pattern of Growth for Eastern Europe

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  • Marin, Dalia

Abstract

This paper looks at Austria's pattern of development and its lessons for Eastern Europe. Austria's development path is characterized by three features. In the post-war era Austria was among the countries with the fastest convergence rate. At the same time Austria's movement up the technological ladder was slow compared with other European countries and came about with a small relative share of R&D in GDP. The paper uses insights from recent dynamic theories of trade to explain these three stylized facts. It is argued that resource endowments, international knowledge spillovers, learning, and government policy have contributed to Austria's post-war growth and the evolution of its pattern of trade over time. The paper looks at two lessons for Eastern Europe. First, Austria as a possible economic case for a gradual approach to economic reform. Second, in the light of the Austrian experience, industrial and trade policy for economies in transition is discussed.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1116.

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Date of creation: Feb 1995
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Handle: RePEc:cpr:ceprdp:1116

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Related research

Keywords: Eastern Europe; Growth; International Spillovers; R&D; Technology Policy; Trade;

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Cited by:
  1. Koman, Reinhard & Marin, Dalia, 1999. "Human Capital and Macroeconomic Growth: Austria and Germany 1960-1997 - An Update," Economics Series 69, Institute for Advanced Studies.
  2. Lorentowicz, Andzelika & Marin, Dalia & Raubold, Alexander, 2005. "Is Human Capital Losing From Outsourcing? Evidence for Austria and Poland," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 76, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  3. Ernest Gnan & Jürgen Janger & Johann Scharler, 2004. "Determinants of Long-Term Growth in Austria – A Call for a National Growth Strategy," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 23–46.
  4. Marin, Dalia, 2004. "A Nation of Poets and Thinkers - Less so with Eastern Enlargement? Austria and Germany," CEPR Discussion Papers 4358, C.E.P.R. Discussion Papers.
  5. Dan Ben-David & Michael B. Loewy, 1997. "Free Trade, Growth, and Convergence," NBER Working Papers 6095, National Bureau of Economic Research, Inc.
  6. Marin, Dalia, 2004. "‘A Nation of Poets and Thinkers’ - Less So with Eastern Enlargement? Austria and Germany," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 77, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.

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