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

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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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File URL: http://www.iei1946.it/RePEc/ccg/KOUKOURITAKIS%20471_488.pdf
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Article provided by Camera di Commercio Industria Artigianato Agricoltura 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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  1. Karagiannis, Giannis & Katranidis, Stelios D. & Velentzas, K., 2000. "An error correction almost ideal demand system for meat in Greece," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 22(1), January.
  2. 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 Industria Artigianato Agricoltura di Genova, vol. 46(4), pages 360-376.
  3. 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.
  4. 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 908-915, July.
  5. Winters, L Alan, 1984. "British Imports of Manufactures and the Common Market," Oxford Economic Papers, Oxford University Press, vol. 36(1), pages 103-118, March.
  6. 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.
  7. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
  8. Balcombe, Kelvin George & 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 of Agricultural Economists, International Association of Agricultural Economists, vol. 15(1), September.
  9. 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.
  10. Winters, L. Alan, 1985. "Separability and the modelling of international economic integration," European Economic Review, Elsevier, vol. 27(3), pages 335-353.
  11. Michael Plummer, 1991. "Ex-post empirical estimates of the second enlargement: The case of Greece," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 127(1), pages 171-182, March.
  12. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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