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

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  • Minoas Koukouritakis

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.

Suggested Citation

  • Minoas Koukouritakis, 2003. "EU Accession Effects on Imports of Manufactures: The case of Greece," University of Cyprus Working Papers in Economics 2-2003, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:2-2003
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    References listed on IDEAS

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    Keywords

    EU accession; Trade protection; Error-corrected AIDS; Iterative SUR process; Elasticities; Analytical approach; Net trade creation;
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