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Growth and EU Trade Relations: A Case Study

Author

Listed:
  • Aristea Gkagka

    (University of Ioannina, Greece)

  • Grigoris Zarotiadis

    (Aristotle University of Thessaloniki, Greece)

Abstract

Our analysis differs in two ways from the existing trade / growth literature. First, we testify the validity of the four thinkable relevant hypotheses for the same dataset simultaneously: export-led growth, import-led growth, growth-led imports and growth-led exports. Second, we check for the different effects that might result from trading within a regional trade agreement regime. We see that trading partners do matter: EU-15 growth seems to be favored by intra-EU expports and imports from the rest of the world, with the exception of China. Yet, the reversed hypotheses are not confirmable. Therefore, even if trading with specific countries creates positive growth effects, they are not likely to be long-lasting.

Suggested Citation

  • Aristea Gkagka & Grigoris Zarotiadis, 2011. "Growth and EU Trade Relations: A Case Study," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 9(1), pages 1-11.
    • Handle: RePEc:seb:journl:v:9:y:2011:i:1:p:1-11
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    References listed on IDEAS

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    Cited by:

    1. Yağmur Sağlam & Hüseyin Avni Egeli, 2018. "A Comparison of Domestic Demand and Export-led Growth Strategies for European Transition Economies," Foreign Trade Review, , vol. 53(3), pages 156-173, August.

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    More about this item

    Keywords

    Trade & Growth Relations;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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