COMPETITIVENESS AND THE EXTERNAL TRADE PERFORMANCE OF GREECE IN THE 1990s: A cross-sectoral investigation
We examine Greece’s external trade following accession to the EU, placing particular emphasis on the 1990s. A large part of our analysis is based on unpublished, disaggregated data sets. Our main findings are: (i) in the 1990s Greece sustained heavy competitiveness losses in those sectors where she traditionally held a comparative advantage; (ii) Greek trade becomes increasingly intra-industry, especially in those sectors where Greece holds a comparative advantage; (iii) regarding imports, EU participation has caused mutually offsetting, stable over time,trade creation for the EU and trade diversion for third countries; (iv) EU participation has not boosted Greek exports. A negative structural break in exports to the Netherlands and Germany (Greece’s most important exporting market) has occurred in the 1990s (v) Demand for Greek exports is highly sensitive to movements of the real exchange rate and presents high income-elasticity. Hence, the deterioration of Greece’s trade deficit in the 1990s is related to the strong-drachma policy and unfavourable external conditions. Overall, our findings indicate that the real sector of the Greek economy has not yet closed the performance gap dividing it from the EMU’s hard core.
|Date of creation:||Jan 2002|
|Contact details of provider:|| Postal: Brunel University, Uxbridge, Middlesex UB8 3PH, UK|
When requesting a correction, please mention this item's handle: RePEc:bru:bruedp:02-06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John.Hunter)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.