Eastern Europe's Growth Transforms Austria's Regions, Reshaping Economic Landscape
The study looks at how trade changes between Austria and Eastern Europe affect different regions in Austria. Researchers used a complex model to see how this trade impacts regional wellbeing. They used data from 1994 and simulated trade increases from 1989 to 1999. The study showed how these trade changes can affect regional welfare, depending on whether wages are fixed or flexible. They compared this detailed model with simpler estimates to understand the bigger picture of how trade influences the economy.