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Austria's Potential for Trade in Services

  • V. Brandicourt
  • C. Schwellnus
  • Julia Woerz

    (wiiw)

We estimate the potential for trade in services in a 2-step approach using a gravity model for a sample of bilateral service trade flows in individual service categories between 65 countries over the period 2000 to 2005. In particular, we focus on the Austrian economy's potential for untapped trade in services which appears to be substantial. While Austria's travel services are reaching their potential, there is still ample room for exports of commercial services. Our analysis further points to the fact that this lack of exploiting the potential arises less from legal and institutional features as measured by OECD regulation indicators, but rather from other structural features of the Austrian economy.

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Paper provided by FIW in its series FIW Research Reports series with number I-002.

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Length: 35
Date of creation: Jun 2008
Date of revision:
Handle: RePEc:wsr:ecbook:2008:i:i-002
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Order Information: Postal: FIW Project Office Austrian Institute of Economic Research Arsenal Objekt 20 A-1030 Vienna
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  1. Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
  2. 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.
  3. Paul Conway & Véronique Janod & Giuseppe Nicoletti, 2005. "Product Market Regulation in OECD Countries: 1998 to 2003," OECD Economics Department Working Papers 419, OECD Publishing.
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