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Governance, Growth and the Recent Economic Crisis: The Case of Greece and Cyprus

Author

Listed:
  • Vassilis T. Rapanos

    (Department of Economics, University of Athens)

  • Georgia Kaplanoglou

    (Department of Economics, University of Athens)

Abstract

Greece and Cyprus are two countries that have been affected gravely by the international economic crisis. As a result both countries were cut off from the international financial markets, and resorted to rescue packages financed by the IMF, the European Commission and the ECB (known as troika). Because of the austerity programs both countries have entered a period of deep recession. In this paper we argue that the length of the adjustment period does not depend only on the severity of the adjustment measures, but also on the quality of institutions and governance mechanisms of the two countries. On the basis of well accepted indicators for the quality of institutions and public governance, we argue that the shorter period of recession in Cyprus is due not only to the less severe policies imposed by troika, but also to the higher quality of its institutions and governance mechanisms.

Suggested Citation

  • Vassilis T. Rapanos & Georgia Kaplanoglou, 2014. "Governance, Growth and the Recent Economic Crisis: The Case of Greece and Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 8(1), pages 3-34, June.
    • Handle: RePEc:erc:cypepr:v:8:y:2014:i:1:p:3-34
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    References listed on IDEAS

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    Cited by:

    1. Georgia Kaplanoglou & Vassilis T. Rapanos & Nikolaos Daskalakis, 2016. "Tax compliance behaviour during the crisis: the case of Greek SMEs," European Journal of Law and Economics, Springer, vol. 42(3), pages 405-444, December.
    2. Dimitris P. SKALKOS, 2018. "Studying the political economy of reforms: The Greek case, 2010-2017," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(615), S), pages 163-186, Summer.
    3. Charis Vlados & Dimos Chatzinikolaou, 2019. "Business ecosystems policy in Stra.Tech.Man terms: The case of the Eastern Macedonia and Thrace region," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(3), pages 163-197.
    4. Angelika Knollmayer & Aleksandra Riedl & Maria Antoinette Silgoner, 2015. "The mixed success of EU-IMF adjustment programs in Europe – why Greece was different," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 52-70.

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