IDEAS home Printed from
   My bibliography  Save this paper

Structural Adjustment of the Greek Economy


  • Katseli, Louka Tarsitsa


This study analyses the likely pattern of structural adjustment of the Greek economy as economic integration proceeds, in light of the structural rigidities present in the commodity, capital and labour markets. The presence of such rigidities is attributed to `state corporatism', identified as the prevalent mode of economic and social organization characterized by an interlocking set of interests and entitlements across the state, financial institutions and traditional industry. The state-corporatist environment has condoned and fostered the development of dual markets and has given rise to allocative inefficiencies in their operations. Integration challenges the fundamentals of state corporatism through trade and capital market liberalization, through exposure of the official sector to external competition and through the requirements imposed by macroeconomic policy coordination. In the short run, unemployment is likely to rise as profitability in the traded-good sector declines. In the medium run, industrial restructuring and increased competition could produce efficiency gains. The policy challenge is to redress internal and external imbalances and at the same time implement a sustainable programme for development, where there is structural adjustment with growth.

Suggested Citation

  • Katseli, Louka Tarsitsa, 1990. "Structural Adjustment of the Greek Economy," CEPR Discussion Papers 374, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:374

    Download full text from publisher

    File URL:
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Costas Milas, 2000. "Employment, output and political business cycle effects in the Greek non-tradable sector," Applied Economics, Taylor & Francis Journals, vol. 32(2), pages 123-133.
    2. Milas, Costas, 1998. "Long-run structural estimation of labour market equations with an application to Greece1," Economic Modelling, Elsevier, vol. 16(1), pages 149-161, January.
    3. Milas, C. & Otero, J., 1999. "Identification and Estimation of a Labour Market Model for the Tradeables Sector: the Greek Case," The Warwick Economics Research Paper Series (TWERPS) 528, University of Warwick, Department of Economics.
    4. Milas, Costas, 1999. "Labor Market Decisions and Greek Manufacturing Competitiveness," Journal of Policy Modeling, Elsevier, vol. 21(4), pages 505-513, July.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:374. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.