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  • manuscript_24.03.2018

    Rights statement: This is the author’s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 76, 2018 DOI: 10.1016/j.econmod.2018.08.005

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Measuring comparative advantages in the Euro Area

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Measuring comparative advantages in the Euro Area. / Konstantakopoulou, Ioanna; Tsionas, Mike G.
In: Economic Modelling, Vol. 76, 01.01.2019, p. 260-269.

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Harvard

Konstantakopoulou, I & Tsionas, MG 2019, 'Measuring comparative advantages in the Euro Area', Economic Modelling, vol. 76, pp. 260-269. https://doi.org/10.1016/j.econmod.2018.08.005

APA

Vancouver

Konstantakopoulou I, Tsionas MG. Measuring comparative advantages in the Euro Area. Economic Modelling. 2019 Jan 1;76:260-269. Epub 2018 Aug 13. doi: 10.1016/j.econmod.2018.08.005

Author

Konstantakopoulou, Ioanna ; Tsionas, Mike G. / Measuring comparative advantages in the Euro Area. In: Economic Modelling. 2019 ; Vol. 76. pp. 260-269.

Bibtex

@article{20434bb7a2eb4b0491d0a3bb8ae12180,
title = "Measuring comparative advantages in the Euro Area",
abstract = "A core principle in international economics is that the specialization of an economy on the basis of its comparative advantages leads to gains from trade. However, there is no empirical work directly linking comparative advantages and export specialization. This paper investigates whether the comparative advantages of countries have driven their export specialization. Panel unit root tests, panel cointegration tests, and panel causality tests are used to examine this relationship. We also use panel estimation methods that mitigate heterogeneity, cross-sectional dependence and endogeneity. The empirical analysis is based on annual Euro Area data for the period 1995–2016. Empirical results indicate that comparative advantages positively affect export specialization. Heterogeneous panel causality analysis results support that there is unidirectional panel causality running from comparative advantages to export specialization in most countries; and a reverse causal relation in Greece, Italy, and Portugal. Finally, we detect bidirectional causality in Ireland, Lithuania, Malta, and Slovakia.",
keywords = "CCE-MG, CCE-PMG, Comparative advantages, Export specialization, Exports competitiveness, FMOLS, GMM estimator, Panel Granger causality",
author = "Ioanna Konstantakopoulou and Tsionas, {Mike G.}",
note = "This is the author{\textquoteright}s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 76, 2018 DOI: 10.1016/j.econmod.2018.08.005",
year = "2019",
month = jan,
day = "1",
doi = "10.1016/j.econmod.2018.08.005",
language = "English",
volume = "76",
pages = "260--269",
journal = "Economic Modelling",
issn = "0264-9993",
publisher = "Elsevier",

}

RIS

TY - JOUR

T1 - Measuring comparative advantages in the Euro Area

AU - Konstantakopoulou, Ioanna

AU - Tsionas, Mike G.

N1 - This is the author’s version of a work that was accepted for publication in Economic Modelling. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Economic Modelling, 76, 2018 DOI: 10.1016/j.econmod.2018.08.005

PY - 2019/1/1

Y1 - 2019/1/1

N2 - A core principle in international economics is that the specialization of an economy on the basis of its comparative advantages leads to gains from trade. However, there is no empirical work directly linking comparative advantages and export specialization. This paper investigates whether the comparative advantages of countries have driven their export specialization. Panel unit root tests, panel cointegration tests, and panel causality tests are used to examine this relationship. We also use panel estimation methods that mitigate heterogeneity, cross-sectional dependence and endogeneity. The empirical analysis is based on annual Euro Area data for the period 1995–2016. Empirical results indicate that comparative advantages positively affect export specialization. Heterogeneous panel causality analysis results support that there is unidirectional panel causality running from comparative advantages to export specialization in most countries; and a reverse causal relation in Greece, Italy, and Portugal. Finally, we detect bidirectional causality in Ireland, Lithuania, Malta, and Slovakia.

AB - A core principle in international economics is that the specialization of an economy on the basis of its comparative advantages leads to gains from trade. However, there is no empirical work directly linking comparative advantages and export specialization. This paper investigates whether the comparative advantages of countries have driven their export specialization. Panel unit root tests, panel cointegration tests, and panel causality tests are used to examine this relationship. We also use panel estimation methods that mitigate heterogeneity, cross-sectional dependence and endogeneity. The empirical analysis is based on annual Euro Area data for the period 1995–2016. Empirical results indicate that comparative advantages positively affect export specialization. Heterogeneous panel causality analysis results support that there is unidirectional panel causality running from comparative advantages to export specialization in most countries; and a reverse causal relation in Greece, Italy, and Portugal. Finally, we detect bidirectional causality in Ireland, Lithuania, Malta, and Slovakia.

KW - CCE-MG

KW - CCE-PMG

KW - Comparative advantages

KW - Export specialization

KW - Exports competitiveness

KW - FMOLS

KW - GMM estimator

KW - Panel Granger causality

U2 - 10.1016/j.econmod.2018.08.005

DO - 10.1016/j.econmod.2018.08.005

M3 - Journal article

VL - 76

SP - 260

EP - 269

JO - Economic Modelling

JF - Economic Modelling

SN - 0264-9993

ER -