Reports

Authors: Andreas Reinstaller, Richard Sellner (OeNB)
Report 03/24

This study analyses the development of the energy cost-based competitiveness of the Austrian business sector with a focus on the manufacturing, construction, and transport industries. The study investigates the development of industrial end-use energy prices and the development of the energy intensity at the sector level, as both factors affect real unit energy cost. The results show that electricity and natural gas prices in Austria are closer coupled than across EU and some OECD countries. Industrial energy prices in Austria have risen steadily, with price levels close to or above the median of other EU and OECD countries. Cross-sector deviations from this pattern reflect differences in the composition of the fuel mix in energy use, with sectors heavily reliant on natural gas and electricity experiencing stronger price increases relative to their international peers. The observed reduction of aggregate energy intensity post-2014 was driven more by structural economic changes than by within-sector improvements in energy intensity. Fuel substitution plays a minor role across sectors and firms. Long-term aggregate trends show a persistent and slightly increasing use of natural gas and a gradual shift from oil to electricity. Losses in energy cost-based competitiveness are associated with a decline in the growth rates of price-cost margins, producer prices as well as productivity. Investment, employment and export growth rates are not significantly correlated to a deterioration of energy cost-based competitiveness.

Cite as: Reinstaller A., Sellner R. (OeNB) (2023). Industrial energy prices and the competitiveness of the Austrian business sector, Report 03/2024.

Author: Zuzana Molnárová
Report 02/24

The aim of this study is to quantitatively assess the potential medium- and long-term macroeconomic effects of improved mobilization of labor force potential, as outlined in the recommendations of the Productivity report 2023. The study focuses on five areas: (i) productivity, (ii) skills and education, (iii) effective labor supply of women (iv) labor market participation of older persons and (v) migration. Benchmarking approach based on labor market and demographic indicators across EU member states is used to identify the potential impact of reforms in Austria. Simulations with the FISK-OLG model show the potential impact of closing the gaps to the EU countries. The quantitative analysis is complemented by a discussion of the structural determinants and possible policy approaches.

The study yields the following key findings. First, sustaining economic growth in Austria at levels comparable to the past 30 years will be challenging in an aging society. Productivity growth would need to significantly increase to counterbalance the effects of a shrinking labor force (relative to total population). Second, utilizing the labor market potentials could bring significant improvements in long-run economic outcomes. Closing the distance to median EU country in terms of educational attainment, effective labor supply of women, and labor market participation of older workers would elevate GDP per capita by about 7%, closing the gap to top performers by about 14% by 2070. Third, there are substantial differences between the reform areas. In the long run, productivity growth and human capital are the most important drivers of economic performance. Therefore, improvements in educational attainment yield significant improvements, although these improvements manifest with a considerable delay. In contrast, increasing the effective labor input of women and older persons has a more immediate positive impact in the short to medium term, with labor input of women holding particularly high potential based on comparisons with other EU member states. Fourth, there are complementarities between reforms across various reform areas.

Cite as: Molnárová Z. (2024). Macroeconomic effects of demographic transition, mobilization of the labor force potential and labor productivity, Report 02/2024, Office of the Austrian Productivity Board.

Author: Michael Weichselbaumer
Report 01/24

Cite as: Weichselbaumer M. (2024). Rückgang des Produktivitätswachstums und Unternehmensdynamik, Report 01/2024, Office of the Austrian Productivity Board.

Authors: Andreas Reinstaller, Michael Weichselbaumer
Report 04/23

Cite as: Reinstaller A., Weichselbaumer M. (2023). Labor productivity and the standard of living in Austria, Report 04/2023, Office of the Austrian Productivity Board.

Author: Zuzana Molnárová
Report 03/23

Cite as: Molnárová Z. (2023). Productivity growth in Austria between 1995 and 2019, Report 03/2023, Office of the Austrian Productivity Board.

Author: Andreas Reinstaller
Report 02/23

Cite as: Reinstaller A. (2023). Konzepte der Wettbewerbsfähigkeit, Report 02/2023, Office of the Austrian Productivity Board.

Author: Andreas Reinstaller
Report 01/23

Cite as: Reinstaller A. (2023). The competitiveness of the Austrian economy: a review of current assessments by international organizations, Report 01/2023, Office of the Austrian Productivity Board.