New trade theory, non-price competitiveness and export performance

Panayiotis Athanasoglou () and Ioanna C. Bardaka

Economic Modelling, 2010, vol. 27, issue 1, 217-228

Abstract: This paper develops a demand function for Greece's exports of manufactures according to New Trade Theory. Non-price competitiveness plays a vital role in explaining export performance and failure to include it in the export equation may lead to mis-specification error. Foreign income has a moderately high effect on exports in the long run and no effect in the short run. Exports are also sensitive to domestic and competitors' prices in the long run, but cost and price competitiveness elasticities are close to one, indicating that Greek exporters have some ability to compete on the basis of prices.

Keywords: Export; demand; Price; and; non-price; competitiveness; New; trade; theory; Vector; autoregressive; error; correction; model (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Working Paper: New trade theory, non-price competitiveness and export performance (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:27:y:2010:i:1:p:217-228

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