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How does economic development in eastern Europe affect Austria's regions? A multiregional general equilibrium framework

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  • Bröcker, Johannes
  • Schneider, Martin

Abstract

This paper presents a framework for analysing the effects of economic development in Eastern Europe on Austria's regions. Therefore we concentrate on the effects of enhanced East-West trade, which results from the economic development in the transition countries. The analytical framework we use is a multiregional computable general equilibrium model for the Austrian economy. The model is based on an Arrow-Debreu-equilibrium. It contains the 9 Austrian Federal Provinces (NUTS-II) which are linked by trade flows with 4 of the Central and Eastern European countries and with the rest of the world. The simulation results of one trade scenario show how structural and welfare effects differ for the Austrian regions.

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Paper provided by Dresden University of Technology, Faculty of Transportation and Traffic Sciences "Friedrich List", Institute for Transport and Economics in its series Discussion Papers with number 1/99.

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Date of creation: 1999
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Handle: RePEc:zbw:tudiwv:199
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Find related papers by JEL classification:
  • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
  • F14 - International Economics - - Trade - - - Empirical Studies of Trade
  • F15 - International Economics - - Trade - - - Economic Integration
  • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
  • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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  1. Richard E. Baldwin & Joseph F. Francois & Richard Portes, 1997. "The costs and benefits of eastern enlargement: the impact on the EU and central Europe," Economic Policy, CEPR;CES;MSH, vol. 12(24), pages 125-176, 04.
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  4. Linda Hunter & James R. Markusen & Thomas F. Rutherford, 1991. "Trade Liberalization in a Multinational-Dominated Industry: A Theoretical and Applied General-Equilibrium Analysis," NBER Working Papers 3679, National Bureau of Economic Research, Inc.
  5. Rich Jones & John Whalley, 1986. "Regional Effects of Taxes in Canada: An Applied General Equilibrium Approach," NBER Working Papers 2107, National Bureau of Economic Research, Inc.
  6. Haaland, J.I. & Wooton, I., 1992. "Market Integration, Competition, and Welfare," Papers 03-92, Norwegian School of Economics and Business Administration-.
  7. Harrison, Glenn W & Rutherford, Thomas F & Wooton, Ian, 1991. "An Empirical Database for a General Equilibrium Model of the European Communities," Empirical Economics, Springer, vol. 16(1), pages 95-120.
  8. Leon Podkaminer & Hermine Vidovic & et al., 1998. "Transition Countries: External Deficits Lower than Feared," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(5), pages 319-338, May.
  9. Baldwin, Richard E. & Venables, Anthony J., 1995. "Regional economic integration," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 31, pages 1597-1644 Elsevier.
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  12. Robert Holzmann & Christian Thimann & Angela Petz, 1994. "Pressure to Adjust: Consequences for the OECD Countries from Reforms in Eastern Europe," International Trade 9403001, EconWPA.
  13. Gerhard Palme, 1988. "Räumliche Entwicklungsmuster der österreichischen Industrie," WIFO Monatsberichte (monthly reports), WIFO, vol. 61(8), pages 473-490, August.
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Cited by:

  1. Almeida, Eduardo Simões de & Guilhoto, Joaquim José Martins, 2010. "Is the truth out there? Avaliando as opções de integração econômica para o Brasil
    [Is the truth out there? Evaluating the economic integration options for Brazil]    ," MPRA Paper 54443, University Library of Munich, Germany.
  2. Jie Zhu & Ying Jin & Marcial Echenique, 2012. "Application of a new spatial computable general equilibrium model for assessing strategic transport and land use development options in London and surrounding regions," ERSA conference papers ersa12p931, European Regional Science Association.
  3. Almeida, Eduardo Simões de & Guilhoto, Joaquim José Martins, 2007. "O custo de transporte como barreira ao comércio na integração econômica: o caso do nordeste
    [The cost of transportation as a barrier to trade in economic integration: the case of northeast]    ," MPRA Paper 31513, University Library of Munich, Germany.
  4. Eduardo Haddad & Jaime Bonet Moron & Geoffrey Hewings & Fernando Perobelli, 2008. "Spatial Aspects of Trade Liberalization in Colombia:A General Equilibrium Approach," BORRADORES DE ECONOMIA 004690, BANCO DE LA REPÚBLICA.
  5. Eduardo A. Haddad & Jaime BonetGeoffrey J.D. Hewings & Fernando S. Perobelli, 2008. "Efectos regionales de una mayor liberación comercial en Colombia: Una estimación con el Modelo CEER," Documentos de trabajo sobre Economía Regional 104, Banco de la Republica de Colombia.
  6. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
  7. Anu TOKILA & Mika HAAPANEN, . "Evaluation of Deadweight Spending in Regional Enterprise Financing," EcoMod2009 21500088, EcoMod.
  8. Diana N. Elshahawany & Eduardo A. Haddd, Michael L. Lahr, 2015. "The Potential Economic Impacts of the Proposed Development Corridor in Egypt: An Interregional CGE Approach," Working Papers, Department of Economics 2015_42, University of São Paulo (FEA-USP).
  9. Plassmann, Florenz, 2005. "The advantage of avoiding the Armington assumption in multi-region models," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 777-794, November.
  10. Haddad, Eduardo A. & Hewings, Geoffrey J.D., 2005. "Market imperfections in a spatial economy: some experimental results," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(2-3), pages 476-496, May.
  11. Zhu, Xueqin & Van Ommeren, Jos & Rietveld, Piet, 2009. "Indirect benefits of infrastructure improvement in the case of an imperfect labor market," Transportation Research Part B: Methodological, Elsevier, vol. 43(1), pages 57-72, January.
  12. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Other Operational Studies 8083, The World Bank.
  13. Eduardo Simões de Almeida & Eduardo Amaral Haddad & Geoffrey John Dennis Hewings, 2003. "The Transport-Regional Equity Issue Revisited," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] e33, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  14. Arne Melchior, 2009. "East-West Integration and the Economic Geography of Europe," CASE Network Studies and Analyses 0379, CASE-Center for Social and Economic Research.
  15. Martin Schneider, 1998. "A multiregional general equilibrium model of the Austrian economy: Effects of the catch-up process of the CEECs on the regional economy," ERSA conference papers ersa98p137, European Regional Science Association.
  16. Mayerhofer, Peter, 2002. "Austrian border regions and eastern integration: A low competitiveness - high growth paradoxon," HWWA Discussion Papers 202, Hamburg Institute of International Economics (HWWA).
  17. Andrew Feltenstein & Florenz Plassmann, 2008. "The Welfare Analysis of a Free Trade Zone: Intermediate Goods and the Asian Tigers," The World Economy, Wiley Blackwell, vol. 31(7), pages 905-924, 07.
  18. Eduardo Simões de Almeida, 2004. "A Duplicação Da Rodovia Fernão Dias: Uma Análise De Equilíbrio Geral," Anais do XXXII Encontro Nacional de Economia [Proceedings of the 32th Brazilian Economics Meeting] 130, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

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