The New Productive Model of the Greek Economy: The Contribution of High-Technology Sector

The manifestation of the global economic crisis in 2007 and its consequences have driven the European economy and, more specifically, the Greek economy to new challenges for adjustment to the new era. In 2010, Greece adopted a fiscal adjustment programme in order to fix the fiscal weaknesses of its economy. After almost 7 years since the fiscal adjustment programme was adopted, the Greek economy is even worse off than the parties involved in the Greek programme had foreseen. For this reason, the aim of this chapter is to examine the productive capabilities of the Greek economy as a means to overcome the recession and stagnation. Exports are a tool for overcoming the stagnation of Greek economy that resulted from the internal devaluation policy. According to the latest available data, Greece is still facing a trade deficit. Its trade balance has improved after the integration to fiscal consolidation process mainly because of the reduction in imports. Greece’s accession to the Economic and Monetary Union and the adoption of euro strengthened consumption against investment. We are going to examine the Greek economy’s performance in regard to high-technology exports. High-technology exports generate higher earnings. The study of certain commodities that embody high technology in comparison with EU-28 and OECD member states will reveal the Greek economy’s potential to meet strong competition in the global economy. The methodology that is adopted is comparative advantage theory.