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The Prominence of the Falling Unit Labor Cost Factor in the Greek Exports Boom

Author

Listed:
  • Ilias Salpigktidis

    (American College of Thessaloniki)

  • Ioannis Krassas

    (American College of Thessaloniki)

  • Georgios Anastasiadis

    (American College of Thessaloniki)

  • Nikolaos Hourvouliades

    (American College of Thessaloniki)

Abstract

investigates which factors led to its impressive rebound in recent years. The main findings suggest that the driving force behind the export boom was increase in price competitiveness. Furthermore, one of the determinants, namely the global demand factor, is found to have greater than expected elasticity. The evidence on domestic demand pressure on exports is inconclusive, (using as a proxy the ratio of prices of Greek internationally tradeable goods to that of non tradeables) but there is some support found to the hypothesis that increased domestic demand is negatively affecting exports.

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Handle: RePEc:bau:ijaefs:v:9:y:2024:i:1:id:155
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