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The impact of regulations and institutions on competitiveness and productivity: the case of Greece

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  • Daphne Nicolitsas

Abstract

The discussion on the causes of the Greek crisis has focused on the twin deficits: the fiscal and current-account deficit. The objective of this paper is to examine how the twin deficits came about implicating structural features of the Greek economy which contributed to the loss in competitiveness. The paper uses evidence on labor market outcomes and business demographics together with detailed information on product and labor market institutions to support the argument that these institutions played a role in the premature deindustrialization of the economy and in shaping a structure binding the economy to a low productivity level. These structural characteristics are related not only to cost elements but also to the capacity of the economy to deliver.

Suggested Citation

  • Daphne Nicolitsas, 2021. "The impact of regulations and institutions on competitiveness and productivity: the case of Greece," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 18(1), pages 23-47, June.
    • Handle: RePEc:liu:liucej:v:18:y:2021:i:1:p:23-47
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    More about this item

    Keywords

    Competitiveness; Institutions; Wage determination; Product market rigidities; Productivity; Self-employment; Deindustrialisation;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J5 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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