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Determinants of Long-Term Growth in Austria – A Call for a National Growth Strategy

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Abstract

This study, which offers a thorough analysis of growth in the past four decades, pinpoints total factor productivity (TFP) and human capital as the main engines of growth in Austria. In a further step it sheds light on the determining factors of TFP against the backdrop of a theoretical framework. The authors present evidence for the importance of innovative activity and human capital. They also examine the role of Austria's institutions involved in economic policy making as well as of economic rules and policies. Austria's dynamic external business is shown to foster productivity; EU enlargement could entail new agglomeration advantages. The study emphasizes the productivity-enhancing role of competition policy and market regulation. In their conclusions, the authors call for a long-term growth strategy for Austria and provide suggestions for such a strategy.

Suggested Citation

  • 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.
    • Handle: RePEc:onb:oenbmp:y:2004:i:1:b:2
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    Cited by:

    1. Sandra Bilek-Steindl & Christian Glocker & Serguei Kaniovski & Thomas Url, 2016. "Austria 2025 – The Effect of Human Capital Accumulation on Output Growth," WIFO Studies, WIFO, number 59175, February.
    2. Jürgen Janger, 2006. "The Lisbon National Reform Programs: New Ideas for Austria’s Economic Policy," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 46-68.
    3. Markus Knell, 2004. "The Role of Revaluation and Adjustment Factors in Pay-As-You-Go Pension Systems," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 55-71.
    4. Jürgen Janger & Julia Bock-Schappelwein & Thomas Horvath & Ina Meyer, 2013. "Monitoring Austria's Efforts Within the Europe 2020 Strategy," WIFO Studies, WIFO, number 46950, April.
    5. Jürgen Janger & Johann Scharler & Alfred Stiglbauer, 2006. "The Potential Growth Prospects of the Austrian Economy — Methods and Determinants," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 24-52.
    6. Jürgen Janger, 2005. "Sectoral Regulation in Austria before and after EU Accession — The Network Industries as a Case in Point," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 178-195.
    7. Jürgen Janger, 2005. "The Research and Development System in Austria – Input and Output Indicators," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 43-57.

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