Analyzing the impact of the economic crisis in Greece on the U.S.

Abstract

The aim of this study is to find the effect of Greece crisis on the exports of the U.S. Major variables like the exports of the U.S. to the European Union, the real exchange rates of dollar viz-a-viz Euro, the Index of Industrial Production of the Euro zone are used for analysis. The econometric methodology applied in this paper follows the methodology followed by Dua (2008). The methodology in terms of the model is similar to that used by Alam (2010); with the difference that whereas Alam analyses the effect of currency on exports, this analysis goes further by assessing the impact of not only the change in currency but also the effect of the economic activity in the Euro zone which would reflect the demand for the U.S. exports.