Terms of Trade

The study investigates nominal and real factors which contribute to the evolution of the terms of trade in Austria. It uses methodes from the recent literature, and draws conclusions about possible economic policy measures. Among the nominal factors there are for instance crude oil price and exchange rate movements. The analysis of real factors focuses on the role of product variety, quality and technical progress. Indicators to assess the technological content of goods will be applied. Beyond that, the export goods basket will be analysed sector-wise and possible future trajectories will be elaborated.