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Austria's Potential for Trade in Services

Author

Listed:
  • V. Brandicourt
  • C. Schwellnus
  • Julia Woerz

    (wiiw)

Abstract

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.

Suggested Citation

  • V. Brandicourt & C. Schwellnus & Julia Woerz, 2008. "Austria's Potential for Trade in Services," FIW Research Reports series I-002, FIW.
  • Handle: RePEc:wsr:ecbook:2008:i:i-002
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    References listed on IDEAS

    as
    1. Paul Conway & Véronique Janod & Giuseppe Nicoletti, 2005. "Product Market Regulation in OECD Countries: 1998 to 2003," OECD Economics Department Working Papers 419, OECD Publishing.
    2. 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.
    3. Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Michael Böheim, 2010. "Competition Policy in the Wake of the Economic Crisis," WIFO Monatsberichte (monthly reports), WIFO, vol. 83(10), pages 831-846, October.
    2. Michael Böheim, 2010. "Competition Policy in the Wake of the Economic Crisis," Austrian Economic Quarterly, WIFO, vol. 15(4), pages 349-363, December.
    3. Julia Woerz, 2008. "Austria's Competitiveness in Trade in Services," FIW Research Reports series I-003, FIW.

    More about this item

    Keywords

    export of services; trade in services; commercial services; gravity modelling; regulation;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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