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Learning and Dynamic Comparative Advantage: Lessons from Austria's Postwar 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 two 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 to other European countries. The paper uses insights from recent dynamic theories of trade to explain these two 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 light of the Austrian experience a recent industrial and trade policy proposal for Eastern Europe is discussed.

Suggested Citation

  • Marin, Dalia, 1995. "Learning and Dynamic Comparative Advantage: Lessons from Austria's Postwar Pattern of Growth for Eastern Europe," Discussion Papers in Economics 610, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenec:610
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    File URL: https://epub.ub.uni-muenchen.de/610/1/learning_1995.pdf
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    Cited by:

    1. Lorentowicz, Andzelika & Marin, Dalia & Raubold, Alexander, 2005. "Is Human Capital Losing from Outsourcing? Evidence for Austria and Poland," CEPR Discussion Papers 5344, C.E.P.R. Discussion Papers.
    2. 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.
    3. Gernot Hutschenreiter & Serguei Kaniovski, 1999. "Technologieströme in der österreichischen Wirtschaft," WIFO Monatsberichte (monthly reports), WIFO, vol. 72(6), pages 419-433, June.
    4. Koman, Reinhard & Marin, Dalia, 1999. "Human Capital and Macroeconomic Growth: Austria and Germany 1960-1997 - An Update," Economics Series 69, Institute for Advanced Studies.
    5. Ben-David, Dan & Loewy, Michael B, 1998. "Free Trade, Growth, and Convergence," Journal of Economic Growth, Springer, vol. 3(2), pages 143-170, June.
    6. Marin, Dalia, 2004. "'A Nation of Poets and Thinkers' - Less So with Eastern Enlargement? Austria and Germany," Discussion Papers in Economics 329, University of Munich, Department of Economics.
    7. repec:wfo:wstudy:7711 is not listed on IDEAS
    8. 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.
    9. repec:wfo:wstudy:20668 is not listed on IDEAS

    More about this item

    Keywords

    Trade and Growth; Growth and Development; Economic Transition; R&D and Innovations;

    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • P2 - Economic Systems - - Socialist Systems and Transition Economies

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