A European macro‐region in the making? The Balkan trade relations of Greece

Abstract

This paper analyzes the post‐1989 trade relations of Greece in the Balkans, a region with a poor performance in both integration and transition processes. On the basis of aggregate trends, a strong expansion of trade is found, while sectoral analysis with the use of Revealed Comparative Advantage (RCA) and Intra‐Industry Trade (IIT) measures, indicates that Greece appears to have comparative advantages in more and different sectors and a relatively higher share of intra‐industry trade when trading with its Balkan neighbours than when trading with the EU countries. It is concluded that the new economic environment in the Balkans provides Greece with a new opportunity to deal effectively with the difficulties of the European integration process and allows the Balkan countries to interact and cooperate without systemic barriers, leaving the level and type of their relations to be an affair of markets, preferences and geography.

Notes

This paper is based on research work undertaken by the author within the content of the ACE‐PHARE projects: ‘Cross‐border cooperation between Albania, Bulgaria and Greece’ (Contract No. ACE‐92–0391‐R), Athens University of Economics and Business, and ‘Economic cooperation in the Balkans: a regional approach to European integration’ (Contract No. ACE‐94–0760‐R), Institute of Economics, Bulgarian Academy of Sciences.