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New trade theory, non-price competitiveness and export performance

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  • Athanasoglou, Panayiotis P.
  • Bardaka, Ioanna C.

Abstract

This paper develops a demand function for Greece's exports of manufactures according to New Trade Theory. Non-price competitiveness plays a vital role in explaining export performance and failure to include it in the export equation may lead to mis-specification error. Foreign income has a moderately high effect on exports in the long run and no effect in the short run. Exports are also sensitive to domestic and competitors' prices in the long run, but cost and price competitiveness elasticities are close to one, indicating that Greek exporters have some ability to compete on the basis of prices.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 27 (2010)
Issue (Month): 1 (January)
Pages: 217-228

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Handle: RePEc:eee:ecmode:v:27:y:2010:i:1:p:217-228

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Export demand Price and non-price competitiveness New trade theory Vector autoregressive error correction model;

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Cited by:
  1. Athanasoglou, Panayiotis & Backinezos, Constantina & Georgiou, Evangelia, 2010. "Export performance, competitiveness and commodity composition," MPRA Paper 31997, University Library of Munich, Germany.
  2. Athanasoglou, Panayiotis, 2011. "The role of product variety and quality and of domestic supply in foreign trade," MPRA Paper 32034, University Library of Munich, Germany.

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