AFLA – Labour Mobility and Demand for Skilled Labour After the Opening of the Austrian Labour Market. Internationalisation and Expansion Plans – How Enterprises in the CENTROPE Region Respond to the Expiry of the Transition Period

Considering the expiry of the transition periods in April 2011, the study examines the internationalisation behaviour and expansion plans of enterprises in the CENTROPE region (Austria, Czech Republic, Slovakia and Hungary). A detailed database (8,300 companies polled) allows us to identify grounds for (past or planned) international activities and to distinguish between Austria as an "old" EU member and the new members. According to the data, the key determinants for international activities are company size, an international outlook on the part of owners, being part of a group structure (in contrast to stand-alone entrepreneurs) and the proximity to the target market. For the countries studied, Austria is the second most important international market (after Germany) and is most often named as a target for expansion plans. Although the extent to which companies willing to expand are actually implementing their plans is unclear, there will be a rise in competitors from the Czech Republic, Slovakia and Hungary over the next years. While an additional effect can be expected once the transition regulations have expired, it will be minor only.