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Public financial support to investments in rural areas: The case of the region of Thessaly in Greece

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  • Simeon Karafolas

    (Technological Educational Institute of Western Macedonia, Department of Financial Applications, Koila Kozanis 50100, Greece)

Abstract

Greek governments have supported investments to rural areas financially either by covering part of the investment and/or offering advantages with respect to interest rate loans or tax advantages. This support had been tendered either by nationally financed programs, called Development Laws, or by other programs, mainly financed by the European Union. The financial support depended on the area where the investment took place, as well as the sector and the nature of the investment. Additionally, another program, the LEADER initiative, was developed. It was financed mainly by the European Union, in order to support investments in rural areas and promote the development and the structural adaptation of the less developed European regions. This paper examines public financial support for investments in rural areas in the case of the region of Thessaly, one of the 13 regions in Greece. Its aim is to point out the importance of investments in the sectors of tourism, industry and agriculture. The region of Thessaly presents obvious interest because of the development of these sectors at different levels, depending on local production characteristics. The time period is the 2000s, when important investments were undertaken in the region, supported financially by Development Laws and the LEADER initiative.

Suggested Citation

  • Simeon Karafolas, 2013. "Public financial support to investments in rural areas: The case of the region of Thessaly in Greece," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 6(2), pages 81-101, September.
    • Handle: RePEc:tei:journl:v:6:y:2013:i:2:p:81-101
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    Cited by:

    1. Simeon Karafolas & Maciej Woźniak, 2020. "The Development of Small Enterprises During and After Crisis: Comparative Analysis of Greece and Poland," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 13(2), pages 30-38, September.
    2. Achilleas KONTOGEORGOS & Fotios CHATZITHEODORIDIS & Efstratios LOIZOU, 2016. "Adaptation strategies for the Greek agricultural cooperatives during the economic crisis," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(1), pages 26-34.
    3. Nikolaos Apostolopoulos & Panagiotis Liargovas & Stavros Stavroyiannis & Ilias Makris & Sotiris Apostolopoulos & Dimitrios Petropoulos & Eleni Anastasopoulou, 2020. "Sustaining Rural Areas, Rural Tourism Enterprises and EU Development Policies: A Multi-Layer Conceptualisation of the Obstacles in Greece," Sustainability, MDPI, vol. 12(18), pages 1-19, September.
    4. Loizou, Efstratios & Chatzitheodoridis, Fotios & Michailidis, Anastasios & Kontogeorgos, Achilleas & Mattas, Konstadinos, 2014. "Leader approach performance assessment in a Greek rural region," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182920, European Association of Agricultural Economists.

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    More about this item

    Keywords

    Financial support; investments; rural areas; Thessaly; Greece;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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