Substudy 13: Exports of Goods and Services Strengthen Demand

In Austria, exports have become a motor for growth in recent years, contributing substantially to the creation of new jobs. Businesses extended their market shares in the global markets, and the trade balance loss, a long-term feature for structural causes, was reduced. Eastern integration in particular has been providing some extraordinary momentum. Altogether, the Austrian economy is highly internationalised, although exports continue to concentrate on medium technologies, whereas the high-tech and services sector, which have the best outlook for the future, are still a rare exception. Schemes to promote exports are restricted due to EU law and international agreement. Aid is thus given primarily in an indirect manner, through technology, tax, location and wage policies concentrating on intense information and consultation (especially for SMEs and with regard to multilateral projects by international banks) and coordination of the various aid programmes and initiatives. With regard to export guarantees and soft loans by Oesterreichische Nationalbank, earlier WIFO studies found high export multipliers, but it is still useful to perform an ongoing examination of the costs and effectiveness of financial aid schemes for exports. Of particular promise appear to be efforts to concentrate export promotion schemes on dynamic markets with a high market potential (Austrian focus markets). Furthermore, it would be useful to promote internationalisation in the services sector and strengthen the networking of production and service activities.