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Growing Together? – Prospects for Economic Convergence and Reunification in Cyprus

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  • Max Watson
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    Abstract

    Policy-makers have increasingly come to focus on the role of economic factors in fuelling or dampening regional and border conflicts. This issue can be highly relevant in the case of nonrecognized entities where some economic interests may benefit from the resulting distortions while others would gain if the political situation were regularised. The experience in Cyprus is interesting in this regard, as it seems that economic factors probably played a significant role in the referenda results of April 2004. Against this backdrop, this paper explores the prospects and priorities in Cyprus by addressing a number of relevant theoretical and policy questions, including: the potential influence of economic factors on conflict resolution; the role played by economics in the failure of the Spring 2004 discussions; the question of the income disparity between north and south; and the synergies that could be unlocked in a converging intra-Cyprus economy.

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    Bibliographic Info

    Paper provided by Hellenic Observatory, LSE in its series GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe with number 07.

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    Date of creation: Oct 2007
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    Handle: RePEc:hel:greese:07

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    Keywords: Cyprus reunification; economic convergence; conflict resolution.;

    References

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    1. Dionyssis G. Dimitrakopoulos, 2007. "Institutions and the implementation of EU public policy in Greece: the case of public procurement," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 02, Hellenic Observatory, LSE.
    2. Vassilis Monastiriotis & Achilleas Tsamis, 2007. "Greece’s new Balkan Economic Relations: policy shifts but no structural change," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 01, Hellenic Observatory, LSE.
    3. Theodoros S. Papaspyrou, 2004. "EMU Strategies: Lessons from Past Experience in View of EU Enlargement," Working Papers 11, Bank of Greece.
    4. Theodoros Papaspyrou, 2004. "EMU strategies: lessons from Greece in view of EU enlargement," LSE Research Online Documents on Economics 5687, London School of Economics and Political Science, LSE Library.
    5. Theodoros S. Papaspyrou, 2007. "Economic Policy in EMU: Community Framework and National Strategies – focus on Greece," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 04, Hellenic Observatory, LSE.
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    Cited by:
    1. Christos Lyrintzis, 2011. "Greek politics in the era of economic crisis: reassessing causes and effects," LSE Research Online Documents on Economics 33826, London School of Economics and Political Science, LSE Library.
    2. Stelios Karagiannis & Yannis Panagopoulos & Prodromos Vlamis, 2010. "Symmetric or Asymmetric Interest Rate Adjustments? Evidence from Greece, Bulgaria and Slovenia," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 39, Hellenic Observatory, LSE.
    3. Theodore Pelagidis, 2010. "The Greek paradox of falling competitiveness and weak institutions in a high GDP growth rate context (1995-2008)," LSE Research Online Documents on Economics 29098, London School of Economics and Political Science, LSE Library.
    4. Efi Vraniali, 2010. "Rethinking Public Financial Management and Budgeting in Greece: time to reboot?," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 37, Hellenic Observatory, LSE.
    5. George Pagoulatos & Nikolaos Zahariadis, 2011. "Politics, labor, regulation, and performance: lessons from the privatization of OTE," LSE Research Online Documents on Economics 33827, London School of Economics and Political Science, LSE Library.
    6. Nicholas Apergis, 2011. "Characteristics of inflation in Greece: Mean Spillover Effects among CPI Components," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 43, Hellenic Observatory, LSE.
    7. Vassilis Monastiriotis & Jacob A. Jordaan, 2011. "Regional Distribution and Spatial Impact of FDI in Greece: evidence from firm-level data," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 44, Hellenic Observatory, LSE.
    8. Christos Dimas, 2010. "Privatization in the name of ‘Europe’: analyzing the telecoms privatization in Greece from a ‘discursive institutionalist’ perspective," LSE Research Online Documents on Economics 31089, London School of Economics and Political Science, LSE Library.

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