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EU Accesssion effects on Trade Flows: The Case of Greece

Minoas Koukouritakis ()

South-Eastern Europe Journal of Economics, 2004, vol. 2, issue 2, 61-79

Abstract: This paper estimates the effects on the Greek trade balance that were caused by the EU accession. A full trade model was used, since the country relies on imported inputs for export production. The residuals approach was implemented. The gradual liberalization of Greek trade through the abolition of tariffs, quotas, financial stringencies and export subsidies, and the harmonization of the indirect tax system, which took place over the 1981-1992 period, led to a substantial increase in the country's trade deficit. This impact was mainly caused by the large increase in imports, as the effect of accession on exports was quite small.

Keywords: EU Accession; Trade liberalization; Residuals approach; Anti-monde; Trade balance (search for similar items in EconPapers)
JEL-codes: C30 F13 F15 (search for similar items in EconPapers)
Date: 2004
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Handle: RePEc:seb:journl:v:2:y:2004:i:2:p:61-79