Trade in Services: Note on the Measurement and Quality of Data Sources

This note gives a comprehensive overview of the currently available international databases on trade in services. Notwithstanding problems in data collection arising from the very wide definition of trade in services (i.e. the four GATS modes in contrast to what is traditionally considered as trade in merchandise goods), we identify a considerable room for improvement of the data situation also with respect to Balance of Payments based data. In this paper we survey IMF, OECD, Eurostat and OENB data at the most detailed sector level. We further give a short descriptive overview of Austria's relative position in service trade flows compared to its major trading partners.export of services, services trade data, services FDI data, Austria

Trade Effects of Services Trade Liberalization in the EU

This paper gives a quantitative assessment of possible trade and welfare effects resulting from different trade liberalization scenarios within the EU. First, we econometrically estimate the existing services trade barriers in the EU (inside the EU and with respect to the third countries). Then we run simulations to estimate effects of the currently achieved liberalization of cross-border trade in services inside the EU, and of the elimination of the remaining trade barriers. The simulations are based on the GTAP model, a computable general equilibrium model. We use the GTAP database V7 (pre-release, benchmarked to 2004) and own estimates of protection in the services sector. Our findings point towards larger gains from more comprehensive cuts in trade barriers. We further observe a reinforcement of specialization patterns, with the new members intensifying their position as EuropeÕs manufacturing base and the old members specializing increasingly in services.trade restrictions, trade liberalization, computable general equilibrium modelling, services trade.

Austrian Linkages to the European Economy and the Transmission Mechanisms of Economic Crisis

Like most of the global economy, Austria suffered from recession in 2008-2009. In this paper we deconstruct the pattern of recession, and the transmission of the global recession to Austria’s economy. We provide a new a new breakdown of the value added in Austrian exports, tracing both upstream and downstream linkages and their role in the recession. We also employ a multi-region computable general equilibrium (CGE) model, focused on Austria and its major trading partners. We estimate the combined impacts of the crisis, as implemented through stylized shocks to investment and household demand across major trading partners. These are based on the actual global demand shocks that occurred in 2008-2009. As we are focused on recession, we work with a short-run version of the model, where labor markers are modeled with unemployment and sticky wages, and where industry structure (number of varieties and allocation of capital stock across industries) is fixed. We introduce demand shocks (changes) to global investment demand calibrated from actual investment demand changes during the recession. We also calibrate output shocks based on actual changes in GDP in this period. The focus on backward and forward linkages provides new insight into the transmission channels for focused demand shocks at the border into more diffuse shocks within the broader Austrian economy. While the drop in global demand during the recent recession was focused on sectors producing heavy investment goods, the actual pressure this placed on the Austrian economy also hinged on the linkages of these sectors to other elements of the Austrian economy.economic crisis, transmission mechanisms, Austria, Europe, CGE

Trade Effects of Services Trade Liberalization in the EU

This paper gives a quantitative assessment of possible trade effects resulting from different trade liberalization scenarios within the EU. The simulations are based on the GTAP model, a computable general equilibrium model. We use the GTAP database and own estimates of protection in the service sector. We compare different scenarios, which differ in the extent of their liberalization (linear versus sector country and specific cuts in existing trade barriers, including all sectors versus only selected sectors). Our findings point towards larger gains from more comprehensive cuts (i.e. including all service sectors) and larger gains for the - up to date more restricted - new EU members.export of services, trade liberalization, computable general equilibrium modelling, services trade

AUSTRIA 2020: The impact of medium-term global trends on the Austrian economy

This study quantifies possible impacts of medium-term structural changes in the global economy on the Austrian economy. Emphasis is placed on the effects of continued medium term growth in emerging markets, especially in Asia and Latin America, on the structure of the Austrian economy. The issues here include the identification of price effects (due to increased demand for raw materials) that can be expected, as well as how these may impact the commodity composition of both exports and imports. Underlying global trends also involve both investment patterns and total factor productivity trends at a more regional level, also impacting on the Austrian economy. Finally, these structural changes at the global level also lead to changes in household incomes and the cost of living in Austria, impacting on patterns of inequality in Austria at the household level.CGE models, GTAP applications, household inequality

Trends in International Trade and FDI in Services: a global database of services trade

This paper builds upon an updated database of international trade and FDI in services (Trade in Services Database Ð TSD) to provide an overview of recent trends in volume and modes of trade in services. The database combines, through concordance to a common classification scheme, data from a number of sources on trade and FDI stocks and flows. The re-classification of these data into a broadly comparable BOPS-based classification scheme yields 15 individual service sectors (and 16 sectors for FDI data). The data sources include the OECD, the IMF, Eurostat, and UNCTAD. The time span ranges broadly from 1994-2006, with earlier data available for individual countries. Cross-border trade flows with the world are available for 188 countries, while bilateral data and FDI data are reported by a narrower set of countries. For countries that do not report bilateral trade directly, a partial dataset is included based on mirror flows from reporter countries. On this basis, while only 30 countries report bilateral flows directly, we have at least partial information on bilateral trade flows for 64 countries, and aggregate trade data for up to 188 countries. NOTE the zip archive includes the dataset in STATA9 format, the paper documenting the dataset, and *.do files for producing a mapping to GTAP service sectors and for producing a larger dataset using mirror flows.Services trade, Services database, TSD, bilateral services trade