Economics at your fingertips  

Fiscal policy, net exports, and the sectoral composition of output in Greece

Athanasios Tagkalakis ()

International Economics and Economic Policy, 2015, vol. 12, issue 4, 539 pages

Abstract: This paper investigates the effects of fiscal policy shocks on net export performance and the sectoral composition of output in Greece in the post 2000 period. A reduction in government spending (or tax hike) exerts a negative response on output which reduces import demand. A cut back in government spending boosts exports through the labor cost competitiveness channel further improving net exports. Tax hikes in particular on social security contributions and other indirect taxes reduce export performance. Although real aggregate output declines following a cut in government spending, the tradable sector output responds positively, further improving net exports. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: Fiscal policy; Net exports; Tradable; Non-tradable; E62; E24; O52; H30 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Fiscal policy, net exports, and the sectoral composition of output in Greece (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2

DOI: 10.1007/s10368-014-0285-8

Access Statistics for this article

International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter

More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-04-06
Handle: RePEc:kap:iecepo:v:12:y:2015:i:4:p:521-539