Trade Effects of Service Liberalization in the EU – Simulation of Regional Macroeconomic Effects for Austria

Based on simulations with a computable general equilibrium model the impacts of service liberalization policies on trade flows were estimated by wiiw. Given these trade effects resulting changes in value added and employment on a regional level were simulated using a multiregional multisectoral model for Austria (MultiREG). Because net exports changed very little, the impact of trade liberalization policies on the Austrian value added turned out to be rather small: While in the short run value added declines somewhat, the impact is positive in the long run; value added, however, increases only by 0.3 percent.