Reports

Autoren: 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.

Zitiervorschlag: Reinstaller A., Sellner R. (OeNB) (2023). Industrial energy prices and the competitiveness of the Austrian business sector, Report 03/2024, Büro des Produktivitätsrates, https://www.produktivitaetsrat.at/publikationen/reports/2024003.html.

Autor: 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.

Zitiervorschlag: Molnárová Z. (2024). Macroeconomic effects of demographic transition, mobilization of the labor force potential and labor productivity, Report 02/2024, Büro des Produktivitätsrates, https://www.produktivitaetsrat.at/publikationen/reports/2024002.html.

Autor: Michael Weichselbaumer
Report 01/24

Das Produktivitätswachstum hat sich von 1995–2006 auf 2007–2019 in vielen Ländern verlangsamt. Der erste Abschnitt fasst die wichtigsten möglichen Ursachen nach Goldin et al. (2024) zusammen und überträgt deren Quantifizierung der Ursachen auf die Wachstumszerlegung für Österreich. Der Beitrag der Arbeitszusammensetzung und der Rückgang des Wachstums von immateriellem Kapital haben die stärksten Beiträge zum Rückgang des Produktivitätswachstums.

Im zweiten Teil wird die Unternehmensdynamik in Österreich und im internationalen Vergleich dargestellt. Unternehmenseintritte und junge Unternehmen leisten wesentliche Beiträge zur Schaffung von Arbeitsplätzen, Produktivitätswachstum und Innovationstätigkeit. Ein deutlicher Rückgang bei mehreren Indikatoren der Unternehmensdynamik ist im beobachteten Zeitraum 2009 bis 2021 in Österreich sichtbar. Der Rückgang ist stärker als in anderen EU-Ländern. Wichtige Ursachen aus der umfassenden und aktuellen Literatur zur Unternehmensdynamik sind technologische Entwicklungen und der demographische Wandel. Technologische Entwicklungen fördern die Bedeutung immateriellen Kapitals. Immaterielles Kapital kann leichter skalierbar sein und so die Dominanz großer Unternehmen steigern und Eintritt erschweren. Die demographische Entwicklung verringert das Arbeitsangebot und den Pool neuer Unternehmer:innen.

Zitiervorschlag: Weichselbaumer M. (2024). Rückgang des Produktivitätswachstums und Unternehmensdynamik, Report 01/2024, Büro des Produktivitätsrates, https://www.produktivitaetsrat.at/publikationen/reports/2024001.html.

Autoren: Andreas Reinstaller, Michael Weichselbaumer
Report 04/23

This study analyzes the relationship between labor productivity growth and the standard of living in Austria from 2006 to 2019 using the statistical decomposition proposed by Oulton (2022). The standard of living is represented by the Equivalized Household Disposable Income (EHDI). The growth rate of EHDI is decomposed into contributions from productivity growth, labor market and demographic indicators, and price competitiveness. The analysis shows that the contribution of labor productivity growth to EHDI growth is the most important component in EHDI growth. However, with the slowdown in labor productivity growth between 2006 and 2019, its contribution has declined, and was therefore an important factor in the sluggish development of household income. Positive contributors to household income growth include the decline in household size and the increase in labor force participation. Negative contributors to EHDI growth include the decline in the household share of total income, the decline in hours worked per employee and the aging of the labor force. In particular, the aging of the labor force is an ongoing concern and its negative contribution to the development of living standards in Austria has increased over time. The results also suggest that the decline in the competitiveness of the Austrian economy vis-à-vis its main trading partners has had a negative impact on living standards.

Zitiervorschlag: Reinstaller A., Weichselbaumer M. (2023). Labor productivity and the standard of living in Austria, Report 04/2023, Büro des Produktivitätsrates, https://www.produktivitaetsrat.at/publikationen/reports/2023004.html.

Autorin: Zuzana Molnárová
Report 03/23

This report analyses productivity growth in Austria between 1995 and 2019 using aggregate and industry-level data. We combine two vintages of the EU KLEMS dataset, which provide information on output and productivity growth and growth components for up to 30 countries and 42 industries. We compare Austria’s productivity growth with that of peer countries, focusing on developed European small open economies.

The analysis confirms the productivity slowdown for Austria, similar to many other developed countries. The productivity growth rates in the most recent part of the sample have not recovered to their pre-financial crisis values. The effect of changing industry composition on productivity growth in Austria was positive and relatively small throughout the sample period, while the decline in productivity growth within industries, both in manufacturing and service sector, was more important. The international comparison shows that the aggregate development in Austria was similar to that of the peer country groups, with higher productivity growth in the years before and during the financial crisis. However, the industry-level evidence shows some important differences for Austria.

Zitiervorschlag: Molnárová Z. (2023). Productivity growth in Austria between 1995 and 2019, Report 03/2023, Büro des Produktivitätsrates, https://www.produktivitaetsrat.at/publikationen/reports/2023003.html.

Autor: Andreas Reinstaller
Report 02/23

Zitiervorschlag: Reinstaller A. (2023). Konzepte der Wettbewerbsfähigkeit, Report 02/2023, Büro des Produktivitätsrates, https://www.produktivitaetsrat.at/publikationen/reports/2023002.html.

Autor: Andreas Reinstaller
Report 01/23

The paper summarizes key findings and recommendations from recent monitoring reports on the competitiveness of the Austrian economy published by the European Commission, the OECD, and the IMF since 2019. The findings are categorized under three aspects: productivity and economic performance, fair and inclusive growth, and environmental sustainability. The review aims to provide a concise overview of the performance of the Austrian economy and the main challenges it faces, and to highlight proposals for addressing these challenges.

Zitiervorschlag: Reinstaller A. (2023). The competitiveness of the Austrian economy: a review of current assessments by international organizations, Report 01/2023, Büro des Produktivitätsrates, https://www.produktivitaetsrat.at/publikationen/reports/2023001.html.