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Processed Food Trade of Greece with EU and Non-EU Countries: An Empirical Analysis

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  • Ghazalian, Pascal L.

Abstract

This paper examines the implications of the European Union (EU) regional trade preferences for processed food trade between Greece and its EU partners, and between Greece and non-EU countries. The empirical analysis relies on the gravity model, and uses different estimation techniques. The results show that the EU regional trade preferences led to substantial increases in processed food trade between Greece and its EU partners, emphasizing trade creation effects. The magnitudes of these increases are higher than the intra-EU average, and are more pronounced for Greece’s imports than for Greece’s exports. The results also indicate that the EU regional trade preferences brought about decreases in processed food trade between Greece and non-EU countries, implying trade diversion effects. The findings in this paper suggest that the Greek food processing industry would benefit from enhanced production, innovation, and market strategies to expand exports to the EU market and to counter import competition in the domestic market.

Suggested Citation

  • Ghazalian, Pascal L., 2015. "Processed Food Trade of Greece with EU and Non-EU Countries: An Empirical Analysis," MPRA Paper 67084, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:67084
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    More about this item

    Keywords

    European Union; food processing; gravity model; Greece; regional trade agreement; trade creation; trade diversion;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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