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The Relationship Between Greek Exports and Foreign Income

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  • Konstantinos Chisiridis
  • Theodore Panagiotidis

Abstract

This paper assesses the effect of foreign economic activity on Greek exports. We employ data from 1995:I to 2016:IV and quantify the long-run foreign income elasticity of Greek exports. We establish a cointegration relationship and employ Dynamic OLS estimations. We find that the aggregate foreign income elasticity of Greek exports is positive and significant. When foreign income is decomposed to the main trading partners, we reveal that economic growth in Turkey and in emerging markets such as the Balkans, North Africa and the Middle East have the greatest impact on Greek exports. The impact of the traditional European trading partners of Greece (Germany and Italy) are found to be positive but insignificant. Finally, the dynamic analysis shows a positive interaction between real income growth in Turkey and Greek export growth at the short-run horizon.

Suggested Citation

  • Konstantinos Chisiridis & Theodore Panagiotidis, 2018. "The Relationship Between Greek Exports and Foreign Income," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 64(1), pages 99-114.
    • Handle: RePEc:dah:aeqaeq:v64_y2018_i1_q1_p99-114
    DOI: 10.3790/aeq.64.1.99
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    Cited by:

    1. Stilianos Fountas, 2018. "Introduction to the Special Issue on Applied Macroeconomics, Finance, and Banking," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot GmbH, Berlin, vol. 64(1), pages 1-3.
    2. Nicholas‐Joseph Lazarou & Andreas Zervas, 2023. "Declining long‐run income elasticities and the rise of cyclicality of trade: Evidence from Greece, 1995–2018," The World Economy, Wiley Blackwell, vol. 46(6), pages 1873-1888, June.

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    More about this item

    Keywords

    Greece; exports; foreign income; cointegration;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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