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Economic Crisis And Regional Development In Greece

Author

Listed:
  • Yannis PSYCHARIS

    () (Panteion University of Social and Political Sciences, Department of Economic and Regional Development;)

  • Antonis ROVOLIS

    () (Panteion University of Social and Political Sciences, Department of Economic and Regional Development)

  • Vassilis TSELIOS

    () (University of Thessaly, Department of Planning and Regional Development)

  • Panayotis PANTAZIS

    () (University of Thessaly, Department of Planning and Regional Development, Panteion University of Social and Political Sciences, Department of Economic and Regional Development)

Abstract

This paper sets out to examine the determinants of regional development in Greece before and during the economic crisis. By proposing an econo-metric model with spatial effects for the years 2005-2008 and 2009-2011, which represent the sub-periods of growth and decline of the Greek economy respectively, we make it possible to capture the different factors that affect the regional economic development of the NUTS III regions in the country. Results highlight that the most urbanized and high income level regions are more affected by the economic crisis. However, these regions had been the ones that most benefited during the upturn of the economic activity. The same applies to the regions that are based on agriculture, which had benefited during the period of economic development but cannot sustain the gains of development during the recession. Specialization in manufacturing is an important determinant of regional development, either in times of growth or in times of crisis, while tourism generates benefits to the neighbouring regions in times of economic crisis. These results are also tested for geographical subsets of the country such as the North-South divide and regions belonging to the development axis of the country (PATHE) versus the rest regions of the country.

Suggested Citation

  • Yannis PSYCHARIS & Antonis ROVOLIS & Vassilis TSELIOS & Panayotis PANTAZIS, 2014. "Economic Crisis And Regional Development In Greece," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 39, pages 67-85.
  • Handle: RePEc:tou:journl:v:39:y:2014:p:67-85
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    References listed on IDEAS

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    Cited by:

    1. Angelos Liontakis, 2020. "How Does a Policymaker Rank Regional Income Distributions across Years? A Study on the Evolution of Greek Regional per Capita Income," Economies, MDPI, Open Access Journal, vol. 8(2), pages 1-12, May.
    2. George Petrakos & Yannis Psycharis, 2016. "The spatial aspects of economic crisis in Greece," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 9(1), pages 137-152.
    3. Anastasia PANORI & Yannis PSYCHARIS, 2018. "The impact of the economic crisis on poverty and welfare in Athens," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 48, pages 23-40.

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    More about this item

    Keywords

    ECONOMIC CRISIS; REGIONAL RESILIENCE; REGIONAL DEVELOPMENT; GREECE;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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