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No. 95. CONVERGENCE AND ECONOMIC PERFORMANCE IN GREECE: NEW EVIDENCE AT REGIONAL AND PREFECTURE LEVEL

Published in DISCUSSION PAPERS

N. Benos, S. Karagiannis. 2007.

 

The purpose of this paper is to test regional convergence and investigate interregional disparities in terms of per capita income in Greece. The novelty of our study lies in the use of a disaggregated dataset for an extended time period (1971-2003) at two regional levels (NUTS II & NUTS III). Our results indicate that there is β convergence between prefectures, but not among regions, while no evidence of σ convergence was found at both regional levels. Also, the GDP geographic concentration and population density have a negative impact on growth, which outweighs the positive growth effect of population geographic concentration and GDP spatial inequality. Thus, policies aiming at the decentralization of economic activity in Greece would enhance growth and regional equality simultaneously. Finally, we do not find economic dualism across geographic areas; however rich prefectures seem to converge faster than poor ones. 

 

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