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How to Save Greece? A Menu for Rebuilding the Greek Economy through Industrial Policy

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  • Benner, Maximilian
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    Abstract

    Underlying Greece's public debt crisis is a fundamental economic problem: its lack of international competitiveness. While in the short term the debt crisis must be solved, in the long term the economic perspective of the country will depend on whether it will succeed in developing competitive industries. Reducing costs by lowering wages in case Greece stays in the eurozone or by devaluing its currency if it does not is only a short-term answer. Increasing Greek competitiveness will depend on a farsighted industrial policy targeted on upgrading the economy.

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    File URL: http://mpra.ub.uni-muenchen.de/40748/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40748.

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    Date of creation: Aug 2012
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    Handle: RePEc:pra:mprapa:40748

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    Keywords: Greece; industrial policy; euro crisis; SME; competitiveness; upgrading;

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    1. Karl Aiginger, 2007. "Industrial Policy: A Dying Breed or A Re-emerging Phoenix," Journal of Industry, Competition and Trade, Springer, vol. 7(3), pages 297-323, December.
    2. Dirk Dohse, 2007. "Cluster-Based Technology Policy—The German Experience," Industry and Innovation, Taylor & Francis Journals, vol. 14(1), pages 69-94.
    3. Dohse, Dirk, 2000. "Technology policy and the regions -- the case of the BioRegio contest," Research Policy, Elsevier, vol. 29(9), pages 1111-1133, December.
    4. Ron Martin, 2012. "Regional economic resilience, hysteresis and recessionary shocks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 1-32, January.
    5. Stuart Dawley & Andy Pike & John Tomaney, 2010. "Towards the Resilient Region?," Local Economy, Taylor and Francis Journals, vol. 25(8), pages 650-667.
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