An empirical investigation of Greek-Balkan bilateral trade

Abstract

This article examines the role that Greece has played in the reorientation of the foreign trade of the transition Balkan countries toward the European Union (EU). Greece's imports from and especially its exports to the other Balkan countries have grown much more rapidly than that of the other EU countries. While proximity plays a role in explaining this, there are important schemes for regional integration in the Balkans that may also play a role. Nevertheless, a gravity model of trade in the region suggests that there is considerable unexploited potential for greater intra-regional trade.