TTIP and its Effects on Austria. A Critical Literature Survey
With a comprehensive Trade and Investment Agreement, called Transatlantic Trade and Investment Partnership (TTIP) the European Union and the USA aim at creating the world's largest free trade area. It should help to stimulate growth and create new jobs. All TTIP studies so far forecast positive trade, welfare and employment effects on both sides of the Atlantic (in various sizes). However, these foreseen gains are not realised now but only after a long period of adjustment. The TTIP hence is not able to overcome the current economic crisis. The estimated welfare gains vary strongly according to the method applied: CGE models come up with modest welfare gains between ½ and 1 percent of GDP; estimations with gravity equations, however, predict great gains (5 percent increase of real GDP per capita in the EU and 13.4 percent in the USA). The results for Austria (1.7 percent GDP growth in CGE models to 2.7 percent in gravity approaches) are somewhat in between these extremes. The results concerning the effects of third countries are politically explosive. Gravity studies indicate extraordinarily large losses in trade (trade diversion) and welfare. This could challenge the acceptance of TTIP at the WTO. Above all, NGOs and the interested public are increasingly sceptical about the seemingly lack of transparency of the TTIP negotiations. Therefore, the European Commission in spring 2014 paused the negotiations and launched public online consultation on investor protection in TTIP.
|Date of creation:||12 May 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heid, Benedikt & Larch, Mario, 2013.
"International Trade and Unemployment: A Quantitative Framework,"
Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order
79824, Verein für Socialpolitik / German Economic Association.
- Benedikt Heid & Mario Larch, 2012. "International Trade and Unemployment: A Quantitative Framework," CESifo Working Paper Series 4013, CESifo Group Munich.
- Melitz, Marc J, 2002.
"The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,"
CEPR Discussion Papers
3381, C.E.P.R. Discussion Papers.
- Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
- Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
- Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011.
"Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity,"
Munich Reprints in Economics
20471, University of Munich, Department of Economics.
- Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2011. "Globalization and labor market outcomes: Wage bargaining, search frictions, and firm heterogeneity," Journal of Economic Theory, Elsevier, vol. 146(1), pages 39-73, January.
- Felbermayr, Gabriel & Prat, Julien & Schmerer, Hans-Jörg, 2008. "Globalization and Labor Market Outcomes: Wage Bargaining, Search Frictions, and Firm Heterogeneity," IZA Discussion Papers 3363, Institute for the Study of Labor (IZA).
- Raza, Werner & Grumiller, Jan & Taylor, Lance & Tröster, Bernhard & von Arnim, Rudi, 2014. "ASSESS_TTIP: Assessing the claimed benefits of the Transatlantic Trade and Investment Partnership," Policy Notes 10/2014, Österreichische Forschungsstiftung für Internationale Entwicklung (ÖFSE) / Austrian Foundation for Development Research.
- James E. Anderson & Eric van Wincoop, 2003.
"Gravity with Gravitas: A Solution to the Border Puzzle,"
American Economic Review,
American Economic Association, vol. 93(1), pages 170-192, March.
- James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
- James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
- Costinot, Arnaud & Rodriguez-Clare, Andres, 2013.
"Trade Theory with Numbers: Quantifying the Consequences of Globalization,"
CEPR Discussion Papers
9398, C.E.P.R. Discussion Papers.
- Arnaud Costinot & Andrés Rodríguez-Clare, 2013. "Trade Theory with Numbers: Quantifying the Consequences of Globalization," NBER Working Papers 18896, National Bureau of Economic Research, Inc.
- David Gaukrodger, 2013. "Investment Treaties as Corporate Law: Shareholder Claims and Issues of Consistency," OECD Working Papers on International Investment 2013/3, OECD Publishing.
- Baier, Scott L. & Bergstrand, Jeffrey H., 2004. "Economic determinants of free trade agreements," Journal of International Economics, Elsevier, vol. 64(1), pages 29-63, October.
- David Gaukrodger & Kathryn Gordon, 2012. "Investor-State Dispute Settlement: A Scoping Paper for the Investment Policy Community," OECD Working Papers on International Investment 2012/3, OECD Publishing.
- Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of Four EU–US Mini Trade Wars—A Survey," Journal of Industry, Competition and Trade, Springer, vol. 4(4), pages 275-315, December.
- Joachim Pohl & Kekeletso Mashigo & Alexis Nohen, 2012. "Dispute Settlement Provisions in International Investment Agreements: A Large Sample Survey," OECD Working Papers on International Investment 2012/2, OECD Publishing.
- Fritz Breuss & Joseph F. Francois, 2011. "EU-South Korea FTA – Economic Impact for the EU and Austria," FIW Policy Brief series 010, FIW.
- Fritz Breuss, 2013. "Europe as a Global Player," WIFO Working Papers 455, WIFO.
- Gabriel Felbermayr & Mario Larch & Finn Krüger & Lisandra Flach & Erdal Yalcin & Sebastian Benz, 2013. "Dimensionen und Auswirkungen eines Freihandelsabkommens zwischen der EU und den USA," ifo Forschungsberichte, Ifo Institute for Economic Research at the University of Munich, number 62.
When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2014:i:468. 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 references are entirely missing, you can add them using this form.