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The Greek paradox of falling competitiveness and weak institutions in a high GDP growth rate context (1995-2008)

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  • Pelagidis, Theodore

Abstract

In this paper, we deal with some pieces of evidence that are necessary to explain the paradox of rapid GDP growth despite the dismal competitiveness of the Greek economy during 1995-2008. It is shown how the structural weaknesses of the Greek economy have hit the domestic economy investigating their impact on the current turmoil. It is argued that the previously favourable global economic environment acted as a locomotive to domestic growth, whereas now that it is gone, structural problems of poor governance, low competitiveness, and a ballooning public deficit and debt have come to the surface. We offer a specific explanation of the current unfortunate state of the economy briefly considering avenues of necessary reforms to overcome it.

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  • Pelagidis, Theodore, 2010. "The Greek paradox of falling competitiveness and weak institutions in a high GDP growth rate context (1995-2008)," LSE Research Online Documents on Economics 29098, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:29098
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    Cited by:

    1. Theodore Pelagidis, 2010. "The Greek Paradox of Falling Competitiveness and Weak Institutions in a High GDP Growth Rate Context (1995-2008)," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 38, Hellenic Observatory, LSE.
    2. Yannis Valinakis, 2012. "Greece’s European Policy Making," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 63, Hellenic Observatory, LSE.
    3. Christodoulakis, Nicos, 2014. "The conflict trap in the Greek Civil War 1946-1949: an economic approach," LSE Research Online Documents on Economics 56228, London School of Economics and Political Science, LSE Library.
    4. Karagiannis, Stelios & Panagopoulos, Yannis & Vlamis, Prodromos, 2010. "Symmetric or asymmetric interest rate adjustments? Evidence from Greece, Bulgaria and Slovenia," LSE Research Online Documents on Economics 29168, London School of Economics and Political Science, LSE Library.
    5. Dimas, Christos, 2010. "Privatization in the name of ‘Europe’: analyzing the telecoms privatization in Greece from a ‘discursive institutionalist’ perspective," LSE Research Online Documents on Economics 31089, London School of Economics and Political Science, LSE Library.
    6. Markantonatou, Maria, 2013. "Diagnosis, treatment, and effects of the crisis in Greece: A 'special case' or a 'test case'?," MPIfG Discussion Paper 13/3, Max Planck Institute for the Study of Societies.
    7. Mohsen Mohammadi Khyareh & Nasrin Rostami, 2022. "Macroeconomic Conditions, Innovation and Competitiveness," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1321-1340, June.
    8. Stavros B. Thomadakis, 2015. "Growth, Debt and Sovereignty: Prolegomena to the Greek Crisis," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 91, Hellenic Observatory, LSE.
    9. Christos Dimas, 2010. "Privatization in the Name of ‘Europe’: analyzing the telecoms privatization in Greece from a ‘discursive institutionalist’ perspective," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 41, Hellenic Observatory, LSE.
    10. Kottaridi, Constantina & Giakoulas, Dimitris & Manolopoulos, Dimitris, 2019. "Escapism FDI from developed economies: The role of regulatory context and corporate taxation," International Business Review, Elsevier, vol. 28(1), pages 36-47.

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    Keywords

    Macroeconomy; institutions; competitiveness; Greek economy;
    All these keywords.

    JEL classification:

    • N0 - Economic History - - General

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