A modern quantitative trade model to analyze policy options for Austrian foreign trade research

The model has now been used extensively to evaluate (free) trade agreements (e.g. NAFTA, TTIP) and trade conflicts (e.g. trade embargoes), the trade war between the USA and China, the decoupling of value chains and economic sanctions (e.g. sanctions against Russia, NATO sanctions). It derives the economic consequences for production, value creation and welfare on the basis of predefined scenarios that specify the policy measures to be evaluated. The model allows the use of different types of data sources that can be used in the construction of the underlying model variables and/or parameters.

The KITE model is constantly being updated to improve its efficiency and/or expand the underlying framework. Current projects include the implementation of carbon footprints in production or the introduction of the land factor into the production function.


The KITE model is maintained and continuously developed by WIFO together with the Kiel Institute for the World Economy. The cooperation with the Kiel Institute is organized as a “research hub”, so that proven researchers from outside these institutions can also contribute and, under certain conditions, gain access to the model resources; this applies in particular to the research community of the FIW project.

External users are expected to cooperate with researchers from the core team and contribute to the further development of the KITE model.

Contact: If you are interested in using and further developing the KITE model, please contact Mr. Hendrik Mahlkow at

The establishment and provision of the KITE model in Austria is funded by the Federal Ministry of Labor and Economy.

Research results and application examples:

  • Felbermayr, G., Mahlkow, H. & Sandkamp, A. Cutting through the value chain: the long-run effects of decoupling the East from the West. Empirica 50, 75–108 (2023).
  • Eppinger, P., Felbermayr, G., Krebs, O., and B. Kukharskyy, 2023. Decoupling GlobalValue Chains, R&R International Economic Review (IER).
  • Chowdhry, S., Hinz, J., Kamin, K., and J. Wanner, 2023. Brothers in arms: The value of coalitions in sanctions regimes, forthcoming Economic Policy.
  • Mahlkow, H et al, 2023. Long-Run Impacts of the Conflict in Ukraine on Food Security in Africa, R&R African Development Review.
  • Hinz, J., Chowdhry, S., Jacobs, A., & Thiele, R. (2022). Effects of the AfCFTA for German and European Companies. IfW Kiel,