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Export Growth and Diversification in a Small State: Cyprus and the European Union


  • Ron Ayres

    (School of social Sciences, University of Greenwich, U.K.)


This paper is concerned with the extent to which the Association Agreements with the EU provided a solution to Cyprus’ trade problems by opening new markets, offering the opportunity to diversify exports and contributing towards removing the foreign exchange gap. While there is evidence that the EU contributed positively to export diversification into manufacturing, overall export performance with the EU was relatively poor and this is reflected in the continuing importance of the markets in the Middle East and the growing prominence of the re-export trade. Economic growth does not appear to have constrained by a foreign exchange gap but this was almost entirely due to the growth of tourism and there is no indication that tourist receipts were influenced by the EU Agreements.

Suggested Citation

  • Ron Ayres, 1999. "Export Growth and Diversification in a Small State: Cyprus and the European Union," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 3(1), pages 55-69, summer.
  • Handle: RePEc:ekn:ekonom:v:3:y:1999:i:1:p:55-69

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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade


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