An Analysis of Austrian Competitiveness in the Bilateral Trade with the USA (TTIP)
This qualitative but data driven study has examined the potential outcomes and opportunities in commodity trade for the Austrian manufacturing sector after the potential conclusion and implementation of a free trade treaty between the USA and the EU commonly referred to as "Transatlantic Trade and Investment Partnership" (TTIP). The study has examined past developments and performance in bilateral trade that have been rather favourable for Austria over the past 10 to 15 years. The study concludes that the favourable developments observed in the recent past are likely to continue and deepen for Austria in bilateral trade with the USA. An additional result shows that free trade agreements tend to weaken path dependence which would be a favourable outcome hitherto neglected in the literature. While the effect seems to be small it would be an important implication for Austria as the structural transformation of its manufacturing sector has been rather sluggish in the past.