Greek Economy Needs Growth Strategy
AbstractGreece has been living beyond its means for a long time now and has accumulated foreign debt. The high level of national debt is merely a reflection of the problems; the actual cause is insufficient economic power. The top-priority political objective is to strengthen the substance of the economy-in particular, the export base-to such an extent that in future, the balance of payments is at least equalized. This means Greece needs a growth strategy to catch-up industrialization. So far, revenue in the economic exchange with other countries has been mainly generated by tourism. However, this pillar is far from sufficient; although there are growth prospects in tourism in southern Europe, these should not be overestimated. On the other hand, Greece's industrial base is only small and heavily biased towards the domestic market. Its production structure and foreign trade links for goods show that the Greek economy presents virtually no competition for developed industrialized nations. Consequently, contrary to claims, the wage restraint in Germany has not put the Greek economy under significant pressure, either. The manufacturing sector and large sections of the economy are to a large extent marked by small-scale production. Overall, in Greece, there is one self-employed worker for every two employees; the employment structure more typical of a transition economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by DIW Berlin, German Institute for Economic Research in its journal DIW Economic Bulletin.
Volume (Year): 2 (2012)
Issue (Month): 3 ()
Greece; economic structures and problems;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Benedikt Herrmann & Alexander Kritikos, 2013.
"Growing out of the crisis: hidden assets to Greece's transition to an innovation economy,"
IZA Journal of European Labor Studies,
Springer, vol. 2(1), pages 1-23, December.
- Herrmann, Benedikt & Kritikos, Alexander S., 2013. "Growing out of the Crisis: Hidden Assets to Greece's Transition to an Innovation Economy," IZA Discussion Papers 7606, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).
If references are entirely missing, you can add them using this form.