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David and Goliath: An Investigation Between Greece–Germany Bilateral Trade for Agricultural Products

In: Global, Regional and Local Perspectives on the Economies of Southeastern Europe

Author

Listed:
  • Achilleas Kontogeorgos

    (University of Patras)

  • Fotios Chatzitheodoridis

    (University of Western Macedonia)

Abstract

This paper investigates the factors that affect the bilateral trade between Greece and Germany for specific agricultural products (Meat and meat preparations, Dairy products and eggs, Fish and fish preparations, Cereals and cereal preparations and Fruit and vegetables). Data was collected through the COMTRADE database for the period 1992–2017. An analysis of the trade flows is made for the two countries. In addition, an augmented gravity model was used to estimate the factors that affect the bilateral trade. The analysis incorporates the cost of trade between the two countries instead of the geographic distance that is usually used in the gravity model. The results showed that the GDP of both countries has a positive effect on the trade flow. Trade costs appear to have a negative effect on trade flows in sectors where the country has a competitive advantage. The paper aims to quantify trade flows and facilitate this way researchers and policymakers to address practical issues and questions when analyzing trade policies between economic giants and smaller trade partners.

Suggested Citation

  • Achilleas Kontogeorgos & Fotios Chatzitheodoridis, 2021. "David and Goliath: An Investigation Between Greece–Germany Bilateral Trade for Agricultural Products," Springer Proceedings in Business and Economics, in: Alexandra Horobet & Lucian Belascu & Persefoni Polychronidou & Anastasios Karasavvoglou (ed.), Global, Regional and Local Perspectives on the Economies of Southeastern Europe, pages 33-52, Springer.
    • Handle: RePEc:spr:prbchp:978-3-030-57953-1_3
    DOI: 10.1007/978-3-030-57953-1_3
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    More about this item

    Keywords

    Greece; Germany; Bilateral trade; Agricultural products; Gravity model;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F19 - International Economics - - Trade - - - Other

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