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Τesting convergence and divergence: the data from Greece


  • Mavroudeas, Stavros
  • Siriopoulos, Costas


The convergence hypothesis is a popular tenet in modern discussions in macroeconomics and regional economics. It derives from the very fundamental properties of the neoclassical single-sector growth model, and its assumption of diminishing returns to scale. Following this theoretical framework a number of empirical tests (σ or unconditional β or conditional β-convergence) has been developed. This paper tests unconditional and conditional β-convergence for the Greek economy. Three issues are being considered: (i)if there is regional convergence, (ii) if there is a North-Southern divide, (iii) if Greece is converging with the other economies taking part in the European integration project. Our empirical results reject the convergence hypothesis in all cases. These findings, together with similar findings for many other economies, pose significant problems for the theoretical assumptions of the neoclassical growth model with exogenous technical change.

Suggested Citation

  • Mavroudeas, Stavros & Siriopoulos, Costas, 1998. "Τesting convergence and divergence: the data from Greece," MPRA Paper 17170, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:17170

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    References listed on IDEAS

    1. Button, Kenneth J & Pentecost, Eric J, 1995. "Testing for Convergence of the EU Regional Economies," Economic Inquiry, Western Economic Association International, vol. 33(4), pages 664-671, October.
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    Cited by:

    1. Mavroudeas, Stavros D., 2015. "The Greek saga: competing explanations of the Greek crisis," Economics Discussion Papers 2015-1, School of Economics, Kingston University London.

    More about this item


    convergence; neoclassical theory; Greece;

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes


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