No. 96. GROWTH EMPIRICS: EVIDENCE FROM GREEK REGIONS
N. Benos, S. Karagiannis. 2007.
The objective of this paper is to empirically examine the growth experience of the Greek regions, in the period towards and following the adoption of the Euro. We focus on the role that investment and employment play in regional growth and analyse how the spatial dynamics and patterns of industry affect the design of growth-promoting policies. After applying three different model specifications, our results indicate that investment in the service sector (hotels and restaurants) and business activities (real estate) enhance growth. Nevertheless, strong evidence of differential growth paths is found in terms of per capita income and time.