Foreign Trade Model

The EcoAustria foreign trade model is an econometrically estimated gravitational model that analyzes the effects of trade restrictions (e.g. protective tariffs or economic sanctions) both in the target country and in the country of origin of the measures. By calculating the effects on trade flows and the associated effects on gross domestic product, employment and fiscal returns, it can be shown what prosperity effects of protective tariffs or sanctions are triggered at home and abroad. Thus, the benefits of trade agreements can also be realistically assessed.