Unequal exchange and absolute cost advantage: evidence from the trade between Greece and Germany

The local power of some unit root tests for panel data

Persefoni Tsaliki, Christina Paraskevopoulou and Lefteris Tsoulfidis ()

Cambridge Journal of Economics, 2018, vol. 42, issue 4, 1043-1086

Abstract: This article investigates the nature and the salient features of international trade between Greece and her major trading partner Germany. The analysis inspired by the classical theory of value and distribution and using input–output data spanning the period 1995–2011 shows that the German economy possesses absolute cost advantage in its trade with Greece which gives rise to unequal exchange in the sense of transfers of labour values from Greece to Germany.

Keywords: Unequal exchange; Absolute cost advantage; Classical theory of value; Factor content; Input–output (search for similar items in EconPapers)
JEL-codes: F10 F11 F14 F16 J31 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (12)

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