This paper analyzes the demand for manufactures in Greece and estimates the
effects from the EU accession. An error correction specification of the Almost
Ideal Demand System has been used. This formulation performs well on theoretical
grounds, as the restrictions that are imposed by the demand theory are supported
by the data provided. The results indicate that the domestic sales of manufactures
are substitutes with imports from the EU and the rest of the world. Using the
residuals approach, it is found that after the EU accession, imports from both
sources substituted for a large part of the domestic sales.
01/01/2005
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