EU Accession Effects on Imports of Manufactures: The case of Greece

Minoas Koukouritakis ()

University of Cyprus Working Papers in Economics from University of Cyprus Department of Economics

Abstract: This paper evaluates the effects of Greece?s accession to the EU on imports of manufactures and static welfare. A dynamic specification of the Almost Ideal Demand System (AIDS) based on cointegration techniques and error correction models, is used. Based on Greek trade data we find that this formulation performs well on theoretical grounds, as the restrictions imposed by demand theory are supported by the data. We find that Greek imports of manufactures from both sources - EU and the rest of the world (ROW) - substituted for domestic sales, implying net trade creation and consequently, improving static welfare and resource allocation.

Keywords: EU accession; Trade protection; Error-corrected AIDS; Iterative SUR process; Elasticities; Analytical approach; Net trade creation (search for similar items in EconPapers)
Pages: 22 pages
Date: 2003-05
New Economics Papers: this item is included in nep-eec
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ucy:cypeua:2-2003

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