Abstract
Τhis paper attempts to highlight the main determinants of Greek export performance over the period 2004–2014. Our empirical analysis shows that unit labor costs and long-term rates negatively affect exports to Eurozone countries. Additionally, exchange rates and unit labor costs seem to be crucial for exports to non-Eurozone countries. Summarizing our results, economic uncertainty is an important drawback for exports to Eurozone countries offsetting the positive effect of reduced labor costs on export performance. Moreover, the clear upward trend of exports to non-Eurozone countries seems to be related both to the reduction of unit labor costs and the devaluation of euro. The need to stimulate growth through a number of reforms in the labor, and goods and services markets is of great importance, absorbing the collapse of domestic demand and redirecting production and capital to tradable goods.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Athanasoglou, Panayiotis P., and Ioanna C. Bardaka. 2008. “Price and Non-price Competitiveness of Exports of Manufactures.” Bank of Greece, Working Paper No. 69, April.
Athanasoglou, Panayiotis P., and Ioanna C. Bardaka. 2010. “New Trade Theory, Non-price Competitiveness and Export Performance.” Economic Modelling 27: 217–228.
Athanasoglou, Panayiotis P., Constantina Backinezos, and Evagelia A. Georgiou. 2010. “Export Performance, Competitiveness and Commodity Composition.” Bank of Greece, Working Paper No. 114, May.
Bellone, Flora, Patrick Musso, Lionel Nesta, and Stefano Schiavo. 2010. “Financial Constraints and Firm Export Behavior.” The World Economy 33: 347–373.
Böwer, Uwe, Vasiliki Michou, and Christoph Ungerer. 2014. “The Puzzle of the Missing Greek Exports, European Economy.” Economic Papers 518: 40.
Felipe, Jesus, and Utsav Kumar. 2011. “Do Some Countries in the Eurozone Need an Internal Devaluation? A Reassessment of What Unit Labour Costs Really Mean.” VoxEU, March 31. http://www.voxeu.org/index.php?q=node/6299
Greenaway, David, Alessandra Guariglia, and Richard Kneller. 2007. “Financial Factors and Exporting Decisions.” Journal of International Economics 73(2): 377–395.
Manova, Kalina. 2008. “Credit Constraints, Equity Market Liberalizations and International Trade.” Journal of International Economics 76(1): 33–47.
Papazoglou, Christos. 2007. “Greece's Potential Trade Flows: A Gravity Model Approach.” International Advances in Economic Research 13(4): 403–414.
Papazoglou, Christos. 2009. “Is Greek Export Performance Indeed Low?” Economic Bulletin, Bank of Greece 32: 27–37.
Stockhammer, Engelbert, and Dimitris P. Sotiropoulos. 2014. “Rebalancing the Euro Area: The Costs of Internal Devaluation.” Review of Political Economy 26(2): 210–233.
Wolf, Holger. 2011. “Internal Devaluation in a Monetary Union.” International Economics and Economic Policy 8(1): 3–6.
Acknowledgments
This research paper was co-financed by the European Union European Social Fund and Greek national funds through the Operational Program “Education and Lifelong Learning” of the National Strategic Reference Framework and the Research Funding Program “THALES—Investing in a knowledge society through the European Social Fund” (MIS 383547). We would like to thank Moise Sidiropoulos and Evangelos Drimpetas for their constructive comments. All remaining errors are our own.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2016 The Author(s)
About this chapter
Cite this chapter
Geronikolaou, G., Spyromitros, E., Tsintzos, P. (2016). What Drives Greek Exports Performance? A Macrolevel Analysis. In: Petrakis, P. (eds) A New Growth Model for the Greek Economy. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-58944-6_20
Download citation
DOI: https://doi.org/10.1057/978-1-137-58944-6_20
Published:
Publisher Name: Palgrave Macmillan, New York
Print ISBN: 978-1-137-58943-9
Online ISBN: 978-1-137-58944-6
eBook Packages: Economics and FinanceEconomics and Finance (R0)