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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.

Suggested Citation

  • Bröcker, Johannes & Schneider, Martin, 1999. "How does economic development in eastern Europe affect Austria's regions? A multiregional general equilibrium framework," Discussion Papers 1/99, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    • Handle: RePEc:zbw:tudiwv:199
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    2. da Motta, Glaucia Possas & Perobelli, Fernando Salgueiro & Domingues, Edson Paulo, 2017. "Avaliação do Padrão de Consumo de Bens e Serviços de Saúde: Uma Abordagem de Equilíbrio Geral Computável para a Economia Brasileira," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 71(4), December.
    3. Eduardo A. Haddad & Jaime Bonet & Geoffrey 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 y Urbana 104, Banco de la Republica de Colombia.
    4. 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.
    5. Bert van Wee & Piet Rietveld, 2013. "CBA: ex ante evaluation of mega-projects," Chapters, in: Hugo Priemus & Bert van Wee (ed.), International Handbook on Mega-Projects, chapter 12, pages 269-290, Edward Elgar Publishing.
    6. De Almeida, Eduardo Simoes & Guilhoto, Joaquim, 2006. "O Custo De Transporte Como Barreira Ao Comércio Na Integração Econômica: O Caso Do Nordeste," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 146589, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    7. 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).
    8. Peter McGregor & Mark Partridge & Dan Rickman, 2010. "Innovations in Regional Computable General Equilibrium (CGE) Modelling," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1307-1310.
    9. 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 32nd Brazilian Economics Meeting] 130, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    10. Mayerhofer, Peter, 2002. "Austrian Border Regions and Eastern Integration A Low Competitiveness - High Growth Paradoxon," Discussion Paper Series 26234, Hamburg Institute of International Economics.
    11. Beckman, Jayson & Hertel, Thomas, 2009. "Why Previous Estimates of the Cost of Climate Mitigation Might Be Too Low," Conference papers 331860, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Eduardo A. Haddad & Geoffrey J. D. Hewings & Fernando S. Perobelli & Raul A. C. dos Santos, 2010. "Regional Effects of Port Infrastructure: A Spatial CGE Application to Brazil," International Regional Science Review, , vol. 33(3), pages 239-263, July.
    13. Roehlano Briones, 2015. "Impact assessment of national and regional policies using the Philippine Regional General Equilibrium model," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 45-76, June.
    14. 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.
    15. Anu Tokila & Mika Haapanen, 2012. "Evaluation of Deadweight Spending in Regional Enterprise Financing," Regional Studies, Taylor & Francis Journals, vol. 46(2), pages 185-201, May.
    16. 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, July.
    17. Eduardo Simoes de Almeida & Eduardo Amaral Haddad & Geoffrey Hewings, 2010. "Transport-Regional Equity Issue Revisited," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1387-1400.
    18. 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.
    19. 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.
    20. 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.
    21. 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.
    22. repec:elg:eechap:14395_2 is not listed on IDEAS
    23. 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.
    24. 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.
    25. World Bank, 2008. "Brazil : Evaluating the Macroeconomic and Distributional Impacts of Lowering Transportation Costs," World Bank Publications - Reports 8083, The World Bank Group.

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    More about this item

    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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