Introduction

The aim of this chapter is to give an analytical overview of the foreign trade between Austria and East Central Europe from the 1940s to the 1980s. The study presents aspects of stability and aspects of change. The first section is devoted to structural features which show considerate persistence over time. Three important characteristics are highlighted: a high degree of economic interdependence between Austria and other East Central European states, persistent patterns of trade, and specific relations of economic growth with export supply and import demand in the socialist economies. The following section analyses structural changes, which reflect three phases of different trade regimes. In the first part of that section, a general survey is presented, with respect to relevant political and economic aspects, and the development of contractual relations is addressed. Statistical features of trade development and estimates of trade functions are discussed in the second part. The chapter concludes with a summary of the findings.

The term ‘Eastern trade’ is used for trade relations between Austria and the seven most important trade partners within the Council for Mutual Economic Assistance (CMEA). To provide clarity, this group is named CMEA7 in the text. In some econometric estimates data for the GDR are omitted. The reason for this lies in the lack of valid GDP data and in the specific nature of economic relations between the GDR and the Federal Republic. The Eastern group without the GDR is referred to as CMEA6.