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The Determinants of Investment Activity in Greece (1960-’99)

Author

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  • Michaelides, Panayotis G.
  • Belegri-Roboli, Athena
  • Economakis, George
  • Milios, John G.

Abstract

The present paper examines the determinants of investment activity in Greece over the period 1960-1999. It describes briefly the investment activity in Greece and then tests for the factors that presumably influence this investment activity. The paper uses a multiple linear regression model incorporating various factors that presumably influence investment activity in Greece, based on theoretical as well as on empirical evidence. The results confirm the anticipated positive relationship between investment and output, investment and profitability, and the anticipated negative relationship between investment and interest rate. Also, the first oil crisis and the incorporation of Greece in the wider EU financial area in 1992 seem to have influenced investment activity. Finally, the paper estimates investment elasticities with respect to the various factors, and makes some comments concerning the encouragement of investment activity in Greece.

Suggested Citation

  • Michaelides, Panayotis G. & Belegri-Roboli, Athena & Economakis, George & Milios, John G., 2005. "The Determinants of Investment Activity in Greece (1960-’99)," MPRA Paper 74548, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74548
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    References listed on IDEAS

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    Cited by:

    1. Angelos VOULDIS & Panayotis MICHAELIDES & John MILIOS, 2008. "Do Technology Shocks affect Output and Profitability over the Business Cycle in Greece (1960-2008)?," EcoMod2008 23800152, EcoMod.
    2. Wiafe, Emmanuel A. & Barnor, Charles & Quaidoo, Christopher, 2014. "Oil price shocks and domestic price investment in Ghana," MPRA Paper 60777, University Library of Munich, Germany.

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    More about this item

    Keywords

    investment; output; interest rate; profitability; crises; Greece;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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