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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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    File URL: https://www.oenb.at/dam/jcr:09fb2266-eacd-47b5-a54e-17fa7aa6056b/mop_2011_q3_analyses03_ragacs_tcm16-241428.pdf
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    References listed on IDEAS

    as
    1. Widodo, Tri, 2010. "Market Dynamics in the EU, NAFTA, North East Asia and ASEAN: the Method of Constant Market Shares (CMS) Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 25, pages 480-500.
    2. Christian Ragacs & Klaus Vondra, 2009. "Austria’s Exports to Eastern Europe: Facts and Forecasts Likely Impact of Slowing Exports on Growth in Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 29-43.
    3. Uwe Dulleck & Neil Foster-McGregor & Robert Stehrer & Julia Wörz, 2004. "Dimensions of Quality Upgrading in CEECs," wiiw Working Papers 29, The Vienna Institute for International Economic Studies, wiiw.
    4. Tadashi Ito & Toshihiro Okubo, 2011. "New Aspects of Intra-Industry trade: Evidence from EU-15 countries," Discussion Paper Series DP2011-02, Research Institute for Economics & Business Administration, Kobe University.
    5. Richardson, J David, 1971. "Some Sensitivity Tests for a 'Constant-Market-Shares' Analysis of Export Growth," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 300-304, August.
    6. Alesina, Alberto & Spolaore, Enrico & Wacziarg, Romain, 2005. "Trade, Growth and the Size of Countries," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 23, pages 1499-1542 Elsevier.
    7. Johannes Pöschl & Robert Stehrer & Roman Stöllinger, 2009. "Characteristics of exporting and non-exporting firms in Austria," FIW Research Reports series II-001, FIW.
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    Citations

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    Cited by:

    1. 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.
    2. 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.

    More about this item

    Keywords

    international competitiveness; Austrian manufacturing; CMSA;

    JEL classification:

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

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