This study highlights many important aspects of the interaction between the tourism sector and the Greek economy and sets out its various effects at both the economic and the social level. Tourism in Greece has grown rapidly over the past decade, with travel receipts and arrivals repeatedly reaching new all-time highs. This momentum has clearly delivered direct benefits to the country’s economy, but it has also brought about structural changes in the landscape of the tourism industry.

Over the past decade, then, a substantial change can be observed in the structure of tourism businesses, particularly during the economic crisis. The number of tourism enterprises fell, while at the same time the number of people employed in them rose. The tourism sector in particular shows rising employment among young people and women, which creates job opportunities for groups that have traditionally had limited access to the labour market. Even so, pay in these branches is often low and the work precarious, with many people employed under flexible forms of employment.

Average expenditure per trip in Greece has declined significantly in recent years. This is directly linked to the shortening of tourists’ length of stay, as visitors tend to cut down the time they spend in order to limit their costs. The trend is a cause for concern, since falling tourism expenditure may have a negative effect on the tourism economy in the long run, especially if it persists.

One of the most important issues the study brings to light, however, is the inability of the Greek tourism system to measure accurately the contribution of tourism to the economy. The lack of adequate statistical data and the absence of an institutional framework to support the measurement of tourism’s economic contribution remain serious problems. This shortage of data makes it difficult for the academic and scientific community, as well as for the authorities responsible for decision-making in the tourism sector, to form a clear picture of the situation.

The supply-side approach to tourism — that is, treating tourism as a set of branches and products — appears to be at odds with the international classifications of products and activities, since it does not provide a full picture of the economic impact of the phenomenon. This is mainly because the “touristic” nature of a product does not depend on the product itself but on the consumer, who ceases to act as a tourist once they return from their trip. By contrast the demand-side approach — viewing tourism as the consumption of a range of products that supplements the consumption of the destination’s permanent residents — offers a more complete picture of the output generated by tourism and of its effects at the macroeconomic level.

To address this problem, Tourism Satellite Accounts (TSAs) are presented as a valuable tool. They constitute an extension of the National Accounts that allows the direct and indirect effects of tourism on output, value added, investment and employment to be measured reliably. Although several European countries have adopted this tool, Greece still lags behind in this respect, which limits any accurate understanding of tourism’s real contribution to the economy.

Drawing on the available data and using statistical methods, the study estimates that Tourism Direct Gross Domestic Product (TDGDP) rose steadily over the period 2010–2019. In 2020, owing to the pandemic, the ratio of TDGDP to GDP fell dramatically to 1.9%, but recovered slightly in 2021. As regards employment in tourism, a significant increase in the number of people working in the sector is observed, with total employment doubling between 2011 and 2019.

Tourism’s contribution to the Greek economy is not confined to employment and GDP, however. The study shows that tourism has other effects as well, such as an increase in imports and in CO2 emissions. Compared with other branches of the economy, though, tourism has relatively low negative environmental impacts, which makes it well suited to demand-side policies aimed at economic recovery over short time horizons. Focusing on receipts from international tourism, we found that the total effect (direct and indirect) of tourism on the country’s GDP comes to approximately 11%, while for employment it reaches 13%.

With regard to the formulation of long-term structural policies, tourism appears to make only a limited contribution to raising labour productivity. Consequently, although tourism matters for economic growth in the short term, it cannot serve as the main lever of a long-term development policy. The study stresses the need for further investigation of the inter-sectoral linkages between the tourism sector and other branches of the Greek economy, in order to gain a better understanding of its developmental role.

One area in which tourism appears to interact significantly is the agri-food sector. The development of integrated value chains between the primary sector and tourism can strengthen the diffusion of growth and create synergies that foster the resilience of the economy. Greater interaction between these two sectors can also improve the quality of the goods produced and increase their total value added.

A further important issue examined is the dependence of domestic tourism activity on inputs of intermediate and final goods and services from abroad. This creates a need for policies that will strengthen domestically produced value added in tourism. Such policies can reinforce the links between tourism and other branches of the economy and contribute to sustainable tourism development.

Το άρθρο NO. 89. THE CONTRIBUTION OF TOURISM TO THE GREEK ECONOMY (IN GREEK) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

This study aims to provide original analytical estimates of sectoral and regional multiplier values for the Greek economy, offering a systematic and theoretically consistent framework that captures the structure and spatial heterogeneity of production, demand, and employment in the country. It relies on the input-output (IO) methodology, which represents a reliable and effective approach to quantifying the economic interdependencies between industries and regions.

The input-output analysis, as embedded in the national accounting systems, captures the technical interrelations between the sectors of the economy, the goods and services they produce, and the flow of inputs required across production chains. A key advantage of this approach is its relative stability over time, as structural changes in economies tend to be gradual. Therefore, the use of the most recent available IO tables—despite their publication lag—remains analytically robust. Derived multipliers summarise these complex relations into clear, synthetic indicators that reflect the capacity of a sector or a region to generate output, employment, or income in response to a unit change in final demand. In this regard, the IO framework offers a general equilibrium perspective suitable for understanding and planning structural policies.

By contrast, econometric models often exhibit limitations, including an inability to fully capture intersectoral linkages, high sensitivity to structural breaks, reliance on contemporaneous data quality, and the requirement to distinguish between normal and crisis periods. These constraints render IO analysis more appropriate for the scope of this study, which is to provide an integrated understanding of multiplier effects across all sectors and regions of Greece.

The analysis further highlights the importance of regional IO frameworks. Spatial inequalities, both across and within European countries such as Greece, are persistent and marked by long-term productivity and income disparities between core and peripheral regions. In this context, multiplier effects serve as important indicators of the capacity of regions to respond to increases in demand and generate broader macroeconomic benefits. Regional analysis of multiplier values allows for the identification of best-performing and underperforming regions, in line with key policy objectives related to output, employment, and productivity growth.

Most existing studies in Greece focus on specific regions and apply location quotient (LQ)-based techniques to regionalise the national IO table. These have included assessments of regional investment programmes and agricultural reforms, particularly in areas such as Peloponnisos, Western Greece, Crete, and Macedonia. While informative, these studies are constrained by their localised scope, the simplistic assumptions of traditional Leontief inverse multipliers, and their limited capacity to capture import trade dependencies.

This study distinguishes itself by employing an advanced regionalisation of the 2015 Greek national IO table, based on an augmented Flegg’s Location Quotient (FLQ) methodology that accounts for market size and productive specialisation. Furthermore, it models the economy under conditions of openness in a joint production framework. In this way, it provides estimates of output, employment, and productivity multipliers that are not only internally consistent but also comparable across all Greek regions and sectors.

The main objective of the study is to identify and quantify intersectoral and regional multiplier effects, allowing for a nuanced understanding of structural asymmetries across the Greek economy. Several hypotheses are tested to evaluate the spatial and sectoral heterogeneity of multipliers, and to assess the impact of imports on the output capabilities of different regions. The results reveal considerable variation in multiplier effects, which reflect the distinct productive structures and trade dependencies of each region.

Based on the estimated multipliers, the study classifies the Greek regions into four main groups. The first group includes the island regions of Notio Aigaio, Voreio Aigaio, and Ionia Nisia, which exhibit high output multipliers, forming a distinct economic cluster. The second group comprises regions such as Western Greece, Attiki, Peloponnisos, and Crete, which demonstrate moderately high multiplier values. The third and fourth groups, encompassing Eastern Macedonia and Thrace, Central and Western Macedonia, Epirus, Thessaly, and Central Greece, exhibit lower multiplier values, indicating more limited capacity for economic propagation.

A key insight from the analysis is that regions with a high degree of dependency on imported goods tend to exhibit lower output multipliers. This suggests that policies promoting import substitution and enhancing local production capacity must be pursued with both sectoral and regional targeting, so as to increase domestic linkages and foster a more balanced pattern of regional development. Excluding imports from the analysis would disproportionately benefit Attiki and further widen existing disparities.

The study also highlights a negative correlation between the dominance of the primary and industrial sectors in a region’s economic structure and its average output multipliers. This finding reflects the limited internal linkages typically associated with such sectors. Additionally, it challenges the assumption that high productivity automatically translates into strong multiplier effects. In fact, regions with high output multipliers do not always align with those that display high productivity. This divergence underscores the need for a more comprehensive development strategy that considers multiplier values, productivity, import dependencies, and other structural characteristics in tandem.

In this context, the policy relevance of the study is manifold. The findings support the formulation of integrated regional development strategies, the targeting of sectoral investments, and the implementation of reforms designed to enhance both the depth and breadth of regional production systems. The evidence indicates that demand management strategies focused solely on regions with high output multipliers may result in short-term gains without addressing long-term structural weaknesses. Conversely, a more balanced approach can stimulate convergence, resilience, and sustainable growth.

Finally, the study offers a perspective for future research and policy development. It proposes that the methodology employed here could form the core of a broader interregional or multiregional input-output framework. Such a framework would enable the estimation of the interregional economic effects of infrastructure investments, through improved accessibility and more integrated regional value chains. In the context of evolving global economic challenges—digitalisation, decarbonisation, and demographic change—the need for such an advanced modelling approach becomes even more pressing.

Το άρθρο NO. 88. SECTORAL AND REGIONAL MULTIPLIER VALUES OF THE GREEK ECONOMY εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

The present Study focuses on the Value Added Tax (VAT), given the significance of the related revenues, upon which governments have come to heavily rely during times of favourable economic conditions as well as during episodes of severe crises and extraordinary disturbances. It provides scholars and fiscal authorities with an inclusive framework for a thorough analysis of the response of VAT revenues to changes in macroeconomic aggregates and implemented policy measures in Greece, i.e., for a comprehensive analysis of VAT revenue buoyancy and elasticity in the country. Revenue response information of this kind is essential for effective tax revenue management, as well as for monitoring and forecasting Greek governments’ public revenues, which is a prerequisite for the implementation of accurate tax measures and the conduction of sustainable fiscal policy in the country.

By synthesizing a wide range of conceptual, theoretical, institutional/legislative, and methodological/technical dimensions and complementing the basic analytical framework with an extended review of the related literature and an investigation of selected specific VAT-related issues, the present Study can be considered to constitute a handbook on VAT revenue response. Such a handbook can be particularly helpful in several settings and contexts for research, academic, and policy purposes. Furthermore, the present Study represents a unique, comprehensive, and multifaceted study for the case of Greece.

The obtained particularly rich and robust findings, which are consistent with economic rationales, strengthen the methodological choices made and the overall analytical framework adopted for the purposes of the Study. The synthesis of all the novel and contributive elements is conducive to better interpreting the obtained results and drawing sound conclusions with major implications. These conclusions justify the formulation of several recommendations for associated future research conduction and policymakers seeking a more integrated VAT policy.

Το άρθρο No. 87. VALUE ADDED TAX REVENUE BUOYANCY AND ELASTICITY IN GREECE εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

This study offers an empirical investigation into the relationship between functional income distribution and aggregate demand growth in the Greek economy. It was prompted by the prolonged recession that followed the 2010 fiscal crisis and the subsequent fiscal adjustment policies, which highlighted the need to reassess this relationship and its implications for economic policymaking in Greece.

The analysis focuses on whether the Greek economy operates under a wage-led or profit-led demand regime. By employing a macro-econometric demand-led model and utilizing time-series econometric techniques for the period 1960–2017, the study estimates the effects of changes in income distribution on the main components of demand—consumption, investment, and net exports—and, by extension, on GDP. Robustness checks are also conducted across distinct sub-periods.

The findings clearly indicate that the Greek economy operates under a wage-led demand regime: increases in the wage share boost aggregate demand primarily through consumption, offsetting potential negative effects on investment and net exports. Accordingly, policies aimed at increasing the wage share, strengthening the welfare state, improving labor market institutions, and raising the minimum wage can act as catalysts for overcoming economic stagnation.

The study concludes that understanding the role of income distribution is critical for designing a sustainable productive model capable of meeting the challenges of a competitive and resilient economy. In this context, the European Union’s Recovery and Resilience Facility could serve as a key opportunity for the strategic reorientation of the Greek economy toward a more productive and balanced growth model.

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Το άρθρο No. 86. INCOME DISTRIBUTION AND AGGREGATE DEMAND: A THEORETICAL AND EMPIRICAL INVESTIGATION USING DATA FROM THE GREEK ECONOMY, 1960–2017 (IN GREEK) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

The examination of the productivity of the Greek economy has been one of the main research interests of KEPE over time, which is evident from its role as the National Productivity Council. The present study, integrated in the body of literature developed and still being developed by the KEPE, also contributes to this direction. The emphasis on productivity issues in the Greek economy is a fundamental component for the formulation of a long-term development strategy that will improve the international competitiveness of domestically produced goods and services and ultimately ensure an ever-increasing standard of living. In other words, it is a crucial parameter for the long-term growth dynamics of the Greek economy, as is evident from the empirical results presented below. 

The present study utilises three alternative perspectives to address methodological and conceptual issues arising from different viewpoints on issues of measuring and estimating productivity. The first model derives from the post-Keynesian tradition and emphasizes the examination of labour productivity within the context of economic history. The second model comes from the neoclassical tradition and emphasises total productivity as a source of economic growth. Finally, the third model utilizes econometric techniques to investigate the determinants of productivity in a synthetic model that emphasizes the social determinants of labour productivity. At the same time, a separate annex presents estimates of the capital stock of the Greek economy.

Overall, a productivity growth strategy is a necessary complement to a growth strategy that emphasises the growth of the factors of production, in other words capital investment and employment. In the context of this strategy, fiscal and monetary discipline are not obstacles, but rather preconditions for sustainable growth, while the achievement of a full employment target helps in this direction. In any case, productivity growth in the Greek economy will have a decisive impact on the direction of the Greek economy and the dynamics it will develop in the years ahead.

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Το άρθρο No. 85. PRODUCTIVITY ISSUES IN THE GREEK ECONOMY: SOCIAL DETERMINANTS. (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

Non-performing loans (NPLs) are a predominant feature of an economy passing through financial and fiscal crisis, on the one hand, and recession in the real economy on the other. This was the situation in the Greek economy during the second decade of the 2000s, which left as its legacy the yet unresolved problem of NPLs. 

In the present study, we approach this issue in two respects. The first part of this study is preoccupied with delineating recent literature on the NPL issue. However, concerning the empirical research, the focus is on the Greek case. Through such a review, both theoretical and empirical problems are clarified, along with the related policy challenges to solve them. In the second part of this study, we use the available time series data of basic macroeconomic variables in the Greek economy along with aggregated banking data for the period 2002Q4 – 2019Q1. Econometric estimations are based on Vector Error Correction Models (VECM). We estimate overall three models corresponding to the three categories of NPLs, i.e., business, consumer and mortgages. Our findings support the significant positive relationship between the unemployment rate and NPLs. Statistically significant coefficients also characterize the relationships between NPLs and the fiscal variables of the government budget balance and public debt, though without a consistent sign. Finally, our findings confirm the existence of a positive, statistically significant relationship between NPLs and the capital adequacy of banks.

The major conclusion that can be drawn from these results is the multiplicity of dimensions that should characterize a successful solution to the NPL problem in the Greek economy. This relates, on the one hand, to policies that would ameliorate conditions in the real economy by exploiting new credit channels or by improving the existing ones. On the other hand, this might also relate to initiatives that enhance the financial health of banks and improve conditions in the financial markets and the relations between lenders and borrowers. Such initiatives, we argue, are those of the government (“Hercules” plan) and of the Bank of Greece to reduce NPLs, the establishment of the Hellenic Development Bank and the new bankruptcy law that improves the relevant legal framework. This study concludes by pointing out certain directions for future research both at the institutional and behavioral level, to the degree that the particular institutional conditions in each country, the comparisons with the European and international experiences and the factors that determine the behaviour of financial markets’ participants, enrich the findings of the present study.

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Το άρθρο No. 84. THE DIMENSIONS OF THE PROBLEM OF NON-PERFORMING LOANS AND THE GREEK CASE DURING THE PERIOD 2002Q4 – 2019Q1. (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

The country’s export performance in recent years has attracted particular interest, both analytical and at the policy level. During the economic crisis, as well as in the subsequent period of the pandemic, Greece’s exports of goods showed significant growth despite the adverse conditions, providing support to the country’s productive sector and to the Greek economy as a whole. The present study focuses on a dimension of export performance, which, so far, has not been sufficiently studied in the case of Greece. This dimension is related to the degree to which exports of goods tend to show a greater degree of diversification over time, or, on the contrary, a greater degree of concentration in specific markets and products, such as, for example, goods in which the country has a comparative advantage over its competitors. 

The study investigates the performance of the Greek economy in the field of goods exports during the past two decades, in the light of the role that the diversification/specialisation of the country’s export portfolio may have played. The analysis uses detailed data on Greek exports of goods and key macroeconomic variables and other data concerning Greece and its trading partners, while also calculating suitable diversification/concentration indicators for the country’s goods exports, as well as relevant competitiveness indicators. Furthermore, the study conducts an empirical investigation of the relationship between product diversification/specialisation and export flows in the case of Greece.

From the analysis of the evolution of the country’s goods exports in terms of products and on the basis of the relevant concentration index values, it seems that, especially during the period following the onset of the economic crisis, an important structural feature of Greece’s goods exports was the relatively high and rising degree of specialisation in specific product categories. In particular, the analysis points to an extremely high share and a large increase in exports of petroleum products, as well as a significant share and increase in exports in the sectors of pharmaceuticals, machinery, appliances, etc., aluminum products, plastics, electrical machinery, vegetable and fruit preparations, fruit and dairy products. On the contrary, exports decreased in the sectors of knitted garments, cotton, iron and steel, and articles of iron and steel. Despite the significant increase in exports of the manufacturing sector, the share of manufactured products in Greece’s exports remains one of the lowest among Eurozone countries, while Greece also lags behind in relation to the level of technology of its industrial exports. With respect to the products of the agri-food sector, the country shows significant activity in the exports of products of protected geographical indication (PDO, PGI, GI).

The analysis of the structure of Greece’s exports by geographical destination suggests that the Eurozone maintains a high and relatively stable share of the country’s goods exports, while the non-Eurozone countries of the EU and other European countries show a significant but declining share. In parallel, countries of the Middle East and South Asia show an increasing share in Greece’s total exports of goods. The assessment of the geographical dispersion of Greece’s goods exports, indicates a fairly high degree of diversification, which, in fact, strengthened slightly over the period under review due to the increasing participation of Middle Eastern and Asian countries in Greece’s export activity.

The results of the empirical analysis indicate the importance of intensifying existing trade relations with each destination country, through the increase of exports of products that Greece already exports to each country. This conclusion does not diminish the importance of geographical diversification, i.e., the opening to new markets abroad.

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Το άρθρο No. 83. EXPORT DIVERSIFICATION, SPECIALISATION AND PERFORMANCE: THE CASE OF GREECE. (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

This study provides an integrated and theoretically sound methodological framework for consistently monitoring and benchmarking efficiency, total factor productivity (TFP) and technology gaps of EU regions. Within this framework, we identify main determinants of inefficiency and formulate productivity-enhancing policies. The results show that the average level of technical efficiency across the EU regions has basically remained the same (about 80%) during the period 2010-2016. Considerable spatial inequalities are observed, since regions of the northern and central-western Europe, which have efficiency scores above 90%, significantly outperform the regions located in the eastern and southern Europe. Additionally, there are significant interregional productivity gaps within specific countries, such as in the U.K., Italy, Spain, and Greece.

All Greek regions fell considerably behind the EU average, with an average level of technical efficiency approximately equal to 54% during this period. The efficiency score (66%) of the best performing region (Attiki) was more than 20 percentage points higher than the efficiency score (44%) of the lowest performing region (Peloponnisos), which was the 8th least efficient region of the EU (in 2016). The region of Kentriki Makedonia and the island regions of Notio Aigaio, Kriti, Voreio Aigaio (in 2010) and Ionia Nisia (in 2016) had efficiency scores above the country’s average. There are also considerable differences in the dynamism among regions, which imply the existence of a multi-speed convergence process within the EU. This process primarily reflects the productivity slowdown in most developed countries/regions and the catching-up of eastern EU regions.

The findings signify that the agglomeration-efficiency nexus is complex and largely context-specific. On the one hand, efficiency is positively affected by the growth of land development sprawl above a threshold point, the geographical (land-use) and sectoral concentration of broad economic activities, the enhancement of human capital and market access (or other types of geographical centrality). On the other hand, sources of inefficiency refer to the growth in employment density above a threshold point, indicating congestion effects, and the much less uniform or more specialised pattern of employment with respect to the average EU pattern.

The findings offer useful implications for policy measures which are tailored to the intrinsic characteristics, needs and comparative advantages of EU regions to address inefficiencies and inequalities among them. Harnessing agglomeration economies, improving connectivity −through strategic investment in physical infrastructure− and advancing human capital are all crucial elements for the sustainable and fair development and cohesion among the European regions. For this purpose, the formulation and implementation of investment programmes and regional-sectoral plans should involve a bundle of policy measures to work in synergy. Among others, these measures may include the strengthening of spatial planning institutions, so that land-use management promotes efficiency, and treatment of agglomeration diseconomies. Regarding Greece, the efficiency gains from establishing an integrated spatial planning framework are stressed for the management of urbanisation and land-intensive developments at the regional level.

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Το άρθρο No. 82. AGGLOMERATION ECONOMIES AND PRODUCTIVITY IN THE EU REGIONS εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

Τhe present study offers a comprehensive analytical framework concerning excise taxes on tobacco products and alcoholic beverages, with emphasis on the corresponding tax revenues and the related elasticities. Given the importance of tax revenues and the specific product categories subject to excise taxation, this framework may act as an especially helpful tool for excise tax policy implementation by public authorities. 

The study entails a wide-ranging reference to the definition of excise taxes, their distinctive features and the institutional and regulatory framework governing their enforcement. It incorporates the analysis of the most recent course of tax revenues in the investigated categories and a detailed presentation of the definition of the underlying theoretical elasticity concepts. The empirical analysis concerns the estimation of demand elasticities with respect to prices and income as well as the estimation of tax revenue sensitivity to changes in major macroeconomic aggregates, through the relevant elasticity and buoyancy measures. The study also investigates certain special issues, which are of particular relevance for the underlying subject, such as the role of affordability, smuggling and contraband, as well as a behavioural dimension.

Addressing the observed shortage in the existing literature, the study conducts an explicit and distinctive analysis for each of the two investigated product categories, i.e., tobacco products and alcoholic beverages. Where feasible, the analysis is conducted even for individual products from these two wide categories. In terms of methodologies and empirical estimations, extending the typically implemented technical procedures, the study applies sophisticated models that relate to the special features of the products under investigation and allow the exploration of the role of policy measures, while it differentiates between the short and the long run.

The rich and specialized evidence offered confirms all the major analytical choices made in the present study. Overall, combining the dimensions of the underlying analysis of excise taxes on tobacco products and alcoholic beverages leads to key findings concerning the implementation of the relevant policies. In order to acquire deep knowledge with regard to the entire scope of the referred dimensions, it is necessary to continuously monitor the associated developments and regularly revise and adjust to changes and new conditions, due to the dynamics characterizing several of these dimensions.

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Το άρθρο No. 81. EXCISE TAXES ON TOBACCO PRODUCTS AND ALCOHOLIC BEVERAGES IN GREECE: REVENUES AND ELASTICITIES. (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

This study investigates the export competitiveness of Euro Area countries. We use competitiveness indicators to identify a country’s sectors with comparative advantages (CAs), to “map” export sectors, and to examine whether the financial crisis affected the competitive position of the export sectors of each Euro Area country. In addition, we investigate the pattern of export specialisation and examine the relationship between comparative advantages and net exports. Finally, our study includes policy proposals that could lead Greece to improve its position in international trade. 

We identified a large number of comparative advantages in several countries, such as Belgium, Spain, France, Austria, Germany, Italy, the Netherlands and Portugal, while fewer sectors with comparative advantages are observed in Cyprus, Ireland, Greece, Slovenia, and Finland. In addition, we note that countries with a large number of comparative advantages have the largest concentration of these in the group of Industrial Products. We also find that economies with high export performance accumulate comparative advantages in the sectors of Chemicals and related products (SITC 5), and Machinery and transport equipment (SITC 7).

The question to be investigated is whether the recent financial crisis has affected the competitiveness of exports of Euro Area countries. We are unable to draw a one-size-fits-all conclusion regarding the direction of changes. Regarding the number of CAs in each country, the findings are mixed. In particular, there is an increase in the number of CAs in Latvia, Portugal, Italy, the Netherlands, and Ireland, and a decrease in Greece, Slovenia, Slovakia, Belgium, and France.

Finally, the empirical analysis of the relationship between comparative  advantages and net exports shows, first, that there is a long-run relationship in all the examined countries. The results indicate that the existence of comparative advantages in specific production sectors can positively affect net exports in these sectors. It is therefore of interest to policy-makers to follow policies that promote and enhance the sectors with comparative advantages. More specifically, the government could implement export promotion programs to facilitate the entry of domestic sectors with comparative advantages into the export market and enhance their export sales.

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Το άρθρο No. 80. INVESTIGATION OF EXTERNAL TRADE AND EXPORT COMPETITIVENESS OF EUROZONE COUNTRIES. (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.