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Trading with richer and poorer countries: trade integration and regional inequality in Greece

Rodríguez-Pose, Andrés ORCID: 0000-0002-8041-0856 and Sotiriou, Alexandra (2021) Trading with richer and poorer countries: trade integration and regional inequality in Greece. Annals of Regional Science. ISSN 0570-1864

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Identification Number: 10.1007/s00168-021-01062-1

Abstract

This paper examines the link between increased trade and regional GDP growth across the regional income distribution in Greece during the post-EMU period (2000–2013). By means of quantile regression techniques, panel fixed effects and system generalized method of moments (GMM), we disentangle the effects of EU trade—trading with generally richer countries—versus global trade—in the case of Greece, mostly trading with poorer countries—at several points of the regional income distribution to identify differences in trade elasticities. The analysis finds that the impact of EU trade is highly heterogeneous and mainly affects negatively the economy of the richer regions in Greece. In contrast, the effects of EU trade display insignificant results for the lower-income regions, attributed to the absence of direct substitution effects.

Item Type: Article
Additional Information: © The Author(s) 2021.
Divisions: Geography & Environment
Date Deposited: 17 May 2021 14:12
Last Modified: 20 Sep 2021 02:21
URI: http://eprints.lse.ac.uk/id/eprint/110489

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