The following essay presents an overview of the national development in Austria between the years 1990 and 2005 with a special emphasis of the last five years. Concerning the wideness of the topic, this essay only deals just with selected points.
1. Basic data′s about Austria
2. Austrian′s comparative advantage
3. Foreign trade
4. Direct and portfolio investments
5. Advantages and disadvantages as a result of foreign trade
According to the importance of exports and imports of goods, services, capital and know-how - especially for a small and open national economy like Austria - this essay will implicitly point out Austrian′s comparative advantage, including the mentioned points on top (three till five).The very fact that every third job is dependent of Austrians export makes the relevance of Austria′s comparative advantage in this context clear.
Table of Contents
1) Austria – some basics
2) Austria’s comparative Advantage
3) Foreign Trade
4) Direct and Portfolio Investment
Direct investments in international comparison
5) Advantages and disadvantages as a result of foreign trade – under consideration of the regional trade agreement EU
Research Objectives and Key Topics
This essay aims to provide a comprehensive overview of the national development of the Austrian economy between 1990 and 2005, with a particular focus on the impact of international trade, tourism, and foreign direct investment. By analyzing statistical data from the last fifteen years, the study examines how Austria's integration into the European Union and the forces of globalization have shaped its competitive landscape and macroeconomic stability.
- Evolution of Austria’s Gross Domestic Product (GDP).
- Evaluation of Austria's comparative advantage, specifically within the tourism sector.
- Analysis of foreign trade dynamics, including import and export performance.
- Role and development of foreign direct investment (FDI) and portfolio investments.
- Economic implications of Austria’s membership in the European Union.
Excerpt from the Book
Direct investments in international comparison
International direct investments are known as very dynamic phenomena. Within the OECD countries they developed themselves more dynamically than foreign trade. You find the same situation in developing countries.
The participation of foreign MNEs in Austria shows a positive dynamic as measured by the share of foreign investments in the EU during the last 20 years. On the one hand, it could be a result of a successful location policy. On the other hand, it could be a result of the important location of Austria at the boarders to transformation countries because Austria is located between “the old Europe” (Germany, Switzerlandand, and Italy) and “the new Europe” (Hungary, Czech Repuplic, Slovakia and Slovenia). With the entry of these four transformation countries into the EU in 2004, Austria’s trade with these countries will increase once again due to the market potential and the decreasing policy restrictions in these countries.
An increase is already visible between 1990 and 2000, when Austrian’s share increased by 5,8% to 11%, explaining that this is more than a doubling. A significant jump by almost 2% results as Austria’s entry into the European Union in 1995. Another jump of 3,5% is noticeable in the years 1998 to 1999, as a result of significant projects and acquisitions. An above average growth in the future is expected (source: Statistik Austria, p. 108-110, Wien, 2006).
Summary of Chapters
1) Austria – some basics: This chapter provides an overview of Austria's demographic and economic data, highlighting the growth of the Gross Domestic Product between 1990 and 2004.
2) Austria’s comparative Advantage: This chapter analyzes Austria's competitive position in the tourism sector, examining the monetary impact of international tourist flows.
3) Foreign Trade: This chapter discusses the dependence of the Austrian economy on foreign trade and evaluates the growth of exports in nominal and percentage terms.
4) Direct and Portfolio Investment: This chapter explores the motives for direct and portfolio investments and tracks their growth as a share of the national GDP.
5) Advantages and disadvantages as a result of foreign trade – under consideration of the regional trade agreement EU: This chapter evaluates the overall economic consequences of Austria's EU membership, focusing on trade liberalization, structural challenges, and unemployment.
Keywords
Austria, National Development, Foreign Trade, Comparative Advantage, Tourism, Gross Domestic Product, GDP, Foreign Direct Investment, FDI, Portfolio Investment, European Union, Economic Growth, Globalization, Export, Import.
Frequently Asked Questions
What is the core subject of this essay?
The essay focuses on the national economic development of Austria between 1990 and 2005, analyzing major indicators such as GDP, foreign trade, and investment patterns.
What are the primary thematic fields covered?
The document covers basic macroeconomic data, the comparative advantage of the tourism industry, foreign trade dynamics, and the role of foreign direct and portfolio investments.
What is the ultimate goal of this research?
The study aims to provide an in-depth analysis of Austria's economic performance and its competitive standing within the European and global markets.
Which scientific methodology is applied here?
The author utilizes a quantitative approach by analyzing statistical datasets, national reports (Statistik Austria), and OECD publications to assess economic changes over time.
What topics are discussed in the main body?
The main body examines the growth of Austria's GDP, the specific impact of the tourism sector, the influence of EU accession on trade, and the dynamics of direct investments.
Which keywords define this document?
Key terms include Austria, Gross Domestic Product, Foreign Trade, Comparative Advantage, Tourism, FDI, and European Union.
How did EU accession influence Austria's export rates?
EU accession led to a significant increase in trade openness, with the nominal export quote rising from 36.8% in 1995 to 51.5% by 2001.
Why is the tourism sector considered a comparative advantage for Austria?
Tourism is a comparative advantage because Austria consistently maintains an export surplus in this service sector, with foreign tourist spending significantly outweighing the expenditures of Austrians abroad.
What structural challenge is linked to the open borders to Eastern Europe?
The author notes that while open borders provide opportunities, they also contributed to structural challenges, specifically in the building industry, due to increased competition from lower-wage labor.
- Citation du texte
- Robert Tönnis (Auteur), 2006, National development in Austria between the years 1990 and 2005, Munich, GRIN Verlag, https://www.grin.com/document/67135
