Austria and the Single European Market

Abstract

The economic consequences—global and on a sectoral level—of the full participation of Austria in the process of economic integration in Europe are assessed with the help of the INFORUM system of interlinked input–output models and the Austrian model in this family, i.e. AUSTRIA IV. The results of two scenarios up to the year 2000 are compared. One scenario is based on the assumption of the full participation of Austria in the process of European integration. The alternative scenario is based on the hypothesis that Austria has to remain in an outsider position. The analysis shows quite relevant positive consequences of full participation by Austria in the process of European integration. Because of compensating forces, the effects on a sectoral level are much more pronounced than those on the global level. The structural implications on output, employment, etc. are quite remarkable.