EU Accession Effects on Export Performance: The Case of Greece
This paper estimates the effects on the Greek export performance that caused by the EU accession. A simultaneous equations model of export demand and export supply has been used in order to avoid the simultaneity problem. Comparative static analysis and the residuals approach have been implemented. The results indicate that the EU accession and the consequent abolition of the export subsidies had a negative effect on the country’s export performance, instead of improving it. The main reason for this effect is that the export subsidies, during the time period that were valid, were just improved the exporters’ revenues and not used for creating new comparative advantages for the Greek products.
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