IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Macroeconomic Effects of Cross-Border Purchases

  • Kurt Kratena

    (WIFO)

  • Michael Wüger

    (WIFO)

Cross-border purchases are an essential feature of market economies, the magnitude of which depends on economic (e.g., price differentials), administrative (such as import quotas) and a variety of other factors (such as geographical constellations). Within the EU the largest cross-border flows of purchasing power occurred between Germany and its neighbors (Denmark in particular), between Luxembourg and its neighbors, and between the Republic of Ireland and Northern Ireland. The completion of the Single Market brought about a short-term intensification of cross-border purchases. In the medium and long term, effects which are likely to cancel each other out will determine the magnitude of cross-border purchases. In Austria, consumer purchases abroad have risen continuously since 1990, at a rate exceeding the growth rate of income and total consumer expenditures. In 1995 (accession to the EU, devaluation of the Italian lira), the outflow of purchasing power totaled ATS 31 billion. The results were a loss in output by 1 percent, a loss of 10,800 jobs, and a loss in tax revenues of ATS 3,6 billion; but, as the WIFO study points out, cross-border purchases are mainly a problem specific to certain border regions and certain economic sectors.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.wifo.ac.at/wwa/pubid/377
File Function: Abstract
Download Restriction: Payment required

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by WIFO in its journal WIFO-Monatsberichte.

Volume (Year): 70 (1997)
Issue (Month): 1 (January)
Pages: 51-61

as
in new window

Handle: RePEc:wfo:monber:y:1997:i:1:p:51-61
Contact details of provider: Postal: Arsenal Object 20, A-1030 Wien
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/

More information through EDIRC

Order Information: Postal: Austrian Institute of Economic Research Publikationsverkauf und Abonnentenbetreuung Arsenal, Objekt 20 A-1030 Vienna/Austria
Email:


No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wfo:monber:y:1997:i:1:p:51-61. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.