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EU Accession Effects on the Demand for Manufactures: the Case of Greece

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  • Koukouritakis, Minoas

    ()
    (University of Crete, Department of Economics)

Abstract

This paper analyzes the demand for manufactures in Greece and estimates the effects from the EU accession. An error correction specification of the Almost Ideal Demand System has been used. This formulation performs well on theoretical grounds, as the restrictions that are imposed by the demand theory are supported by the data provided. The results indicate that the domestic sales of manufactures are substitutes with imports from the EU and the rest of the world. Using the residuals approach, it is found that after the EU accession, imports from both sources substituted for a large part of the domestic sales.

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Bibliographic Info

Article provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.

Volume (Year): 58 (2005)
Issue (Month): 4 ()
Pages: 471-488

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Handle: RePEc:ris:ecoint:0098

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Keywords: Elasticities; Error correction Almost Ideal Demand System; EU accession; Residuals approach; Trade liberalization.;

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  1. Pashardes, Panos, 1993. "Bias in Estimating the Almost Ideal Demand System with the Stone Index Approximation," Economic Journal, Royal Economic Society, vol. 103(419), pages 908-15, July.
  2. Winters, L Alan, 1984. "British Imports of Manufactures and the Common Market," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 103-18, March.
  3. Winters, L. Alan, 1984. "Separability and the specification of foreign trade functions," Journal of International Economics, Elsevier, vol. 17(3-4), pages 239-263, November.
  4. Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
  5. Karagiannis, G. & Katranidis, S. & Velentzas, K., 2000. "An error correction almost ideal demand system for meat in Greece," Agricultural Economics, Blackwell, vol. 22(1), pages 29-35, January.
  6. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  7. Michael Plummer, 1991. "Ex-post empirical estimates of the second enlargement: The case of Greece," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(1), pages 171-182, March.
  8. Georgakopoulos, Theodore A., 1993. "Trade and Welfare Effects of Common Market Membership: An Ex-post Evaluation for Greece," Economia Internazionale / International Economics, Camera di Commercio di Genova, vol. 46(4), pages 360-376.
  9. Johnson, James A, et al, 1992. "Short-Run and Long-Run Elasticities for Canadian Consumption of Alcoholic Beverages: An Error-Correction Mechanism/Cointegration Approach," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 64-74, February.
  10. Karagiannis, G. & Katranidis, S. & Velentzas, K., 2000. "An error correction almost ideal demand system for meat in Greece," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 22(1), January.
  11. Winters, L. Alan, 1985. "Separability and the modelling of international economic integration," European Economic Review, Elsevier, vol. 27(3), pages 335-353.
  12. Michael Arghyrou, 2000. "EU participation and the external trade of Greece: an appraisal of the evidence," Applied Economics, Taylor & Francis Journals, vol. 32(2), pages 151-159.
  13. Balcombe, K.G. & Davis, J.R., 1996. "An application of cointegration theory in the estimation of the Almost Ideal Demand system for food consumption in Bulgaria," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 15(1), September.
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Cited by:
  1. Minoas Koukouritakis, 2005. "EU Accession Effects on Export Performance: The Case of Greece," Working Papers 0516, University of Crete, Department of Economics.

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