Abstract
The present chapter examines the impact of significant sectors of the Greek economy and their relationship with economic growth. The variables employed for this study involve tourism-generated GDP, money supply, construction and taxation, and economic growth in Greece while the methodology employed is the multivariate autoregressive VAR model. The long-term relationship between GDP and the variables examined was validated for the period between 1965 and 2015. According to our findings, the “growth engine” for Greece seems to be tourism, rather than the manufacturing sector, while they confirm a shift away from the tertiary toward the primary sector. The results provide policy-makers with effective policy tools for the simultaneous economic growth of the two aforementioned sectors.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Agell, J., Ohlsson, H., & Thoursie, P. (2006). Growth effects of government expenditure and taxation in rich countries: A comment. European Economic Review, 50(1), 211–218 [online]. Retrieved January 10, 2020, from https://www.sciencedirect.com/science/article/pii/S0014292105000139
Barro, R. J. (1990). Government spending in a simple model of endogenous growth. Journal of Political Economy, 98(5), 103–125 [online]. Retrieved January 10, 2020, from https://www.journals.uchicago.edu/doi/10.1086/261726
Barro, R. J. (1991). Economic growth in a cross-section of countries. Quarterly Journal of Economics, 106(2), 407–443 [online]. Retrieved January 10, 2020, from https://academic.oup.com/qje/article-abstract/106/2/407/1905452
Bernardi, L. (2013). Recent findings regarding the shift from direct to indirect taxation in the EA-17. MPRA paper no. 47877 [online]. Retrieved January 10, 2020, from https://mpra.ub.uni-muenchen.de/47877/
Brida, J. G., & Pulina, M. (2010). A literature review on the tourism-led growth hypothesis. Centro di Ricerche Economiche NOrd e Sudd (CRENoS) no. 17 [online]. Retrieved January 10, 2020, from https://crenos.unica.it/crenos/publications/literature-review-tourism-led-growth-hypothesis
Chamley, C. (1986). Optimal taxation of capital income in general equilibrium with infinite lives. Econometrica, 54(3), 607–22 [online]. Retrieved January 10, 2020, from https://www.jstor.org/stable/1911310?seq=1#metadata_info_tab_contents
Collignon, S. (2013, May 30). Austerity versus growth: Fiscal policy and debt sustainability. Social Europe Journal [online]. Retrieved January 10, 2020, from https://www.academia.edu/3633053/Austerity_versus_growth_III_fiscal_policy_and_debt_sustainability
Dackehag, M., & Hansson, A. (2012). Taxation of income and economic growth: An empirical analysis of 25 rich OECD countries. Department of Economics, Lund University, WP 2012:6 [online]. Retrieved January 10, 2020, from https://ideas.repec.org/p/hhs/lunewp/2012_006.html
Delivani, E. (1991). Tourism as an alternative engine of growth: The case of Greece; A Kaldorian approach. PhD Thesis, University of York [online]. Retrieved on 10 January 2020, from http://etheses.whiterose.ac.uk/4261/
Delivani, E., & Nikas, C. (2011). Tertiarization and economic development: The case of Greece (in Greek). In A. Dedousopoulos & T. Koutroukis (Eds.), Τhe expansion of the service sector (in Greek). Athens: Kritiki.
Delivani, E., & Nikas, C. (2013) The Greek economy in a Kaldorian developmental framework: A comment. Akadémiai Kiadó, 63(2), 225–228 [online]. Retrieved January 10, 2020, from https://core.ac.uk/display/78474892
Drakopoulos, S. A., & Theodosiou, I. (1991). Kaldorian approach to Greek economic growth. Applied Economics, 23(10), 1683–1689 [online]. Retrieved January 10, 2020, from https://mpra.ub.uni-muenchen.de/48989/
Dritsakis, N. (2004). Tourism as a long-run economic growth factor: An empirical investigation for Greece using causality analysis. Tourism Economics, 10(3), 305–311 [online]. Retrieved January 10, 2020, from https://journals.sagepub.com/doi/abs/10.5367/0000000041895094
Dritsakis, N., & Athanasiadis, S. (2000). An econometric model of tourist demand: the case of Greece. Journal of Hospitality and Leisure Marketing, 7(2), 39–49 [online]. Retrieved January 10, 2020, from https://www.tandfonline.com/doi/abs/10.1300/J150v07n02_03
Fölster, S., & Henrekson, M. (2001). Growth effects of government expenditure and taxation in rich countries. European Economic Review, 45(8), 1501–1520 [online]. Retrieved January 10, 2020, from https://www.sciencedirect.com/science/article/pii/S0014292100000830
Galani, V. (1993). From agriculture to tourism: Property, labor, gender, and kinship in a Greek Island Village. Journal of Modern Greek Studies, 11(2), 241–270 [online]. Retrieved January 10, 2020, from https://muse.jhu.edu/article/264597/pdf
Gemmell, N., Kneller, R., & Sanz, I. (2006). Fiscal policy impacts on growth in the OECD: Are they long-or short-Term? University of Nottingham, Nottingham [online]. Retrieved January 10, 2020, from https://pdfs.semanticscholar.org/eca1/08deaf73c53bfec78c30e673a2b240b17a83.pdf
Kaldor, N. (1966). Causes of the slow growth of the U.K. (p. 40). London: Cambridge University Press [online]. Retrieved January 10, 2020, from https://www.cambridge.org/core/journals/recherches-economiques-de-louvain-louvain-economic-review/article/n-kaldor-causes-of-the-slow-rate-of-economic-growth-of-the-united-kingdom-an-inaugural-lecture-london-cambridge-university-press-1966-40-p-5-net-in-uk/471781704ADF4ED87FE0661959B8E12E
Katrakilidis, C., Tsaliki, P., & Tsiakis, T. (2013). The Greek economy in a Kaldorian developmental framework. Acta Oeconomica, 63(2), 61–75 [online]. Retrieved January 10, 2020, from https://ideas.repec.org/a/aka/aoecon/v63y2013i1p61-75.html
Kneller, R., Bleaney, M., & Gemmell, N. (1999). Fiscal policy and growth: Evidence from OECD countries. Journal of Public Economics, 74(2), 171–190 [online]. Retrieved January 10, 2020, from https://www.sciencedirect.com/science/article/pii/S0047272799000225
Koester, R., & Kormendi, R. (1989). Taxation, aggregate activity and economic growth: Cross-country evidence on some supply-side hypotheses. Economic Inquiry, 27(3), 367–386 [online]. Retrieved January 10, 2020, from https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1465-7295.1989.tb02011.x
Kollias, C., & Paleologou, S. M. (2006). Fiscal policy in the European Union: Tax and spend, spend and tax, fiscal synchronization or institutional separation? Journal of Economic Studies, 33(2), 108–120 [online]. Retrieved January 10, 2020, from https://www.emerald.com/insight/content/doi/10.1108/01443580610666064/full/html
LAW No. 3845. (2010). Measures for the implementation of the mechanism of support to the Greek economy by the euro area Member States and the International Monetary Fund. Greek Government Newsletter A’65—May 6.
Lee, Y., & Gordon, R. (2005). Tax structure and economic growth. Journal of Public Economics, 89(5–6), 1027–1043 [online]. Retrieved January 10, 2020, from https://www.sciencedirect.com/science/article/pii/S0047272704001343
Levine, R., & Renelt, D. (1992). A sensitivity analysis of cross-country growth regressions. American Economic Review, 82(4), 942–963 [online].Retrieved January 10, 2020, from https://www.jstor.org/stable/2117352?seq=1#metadata_info_tab_contents
Nikas, C. (2006). Invisibles and economic development. Thessaloniki: Epikentro Publications. (in Greek).
OECD. (2008). Taxing wages 2007. Paris: OECD Publishing [online]. Retrieved January 10, 2020, from https://www.oecd-ilibrary.org/taxation/taxing-wages-2007_tax_wages-2007-en
Payne, J., & Mervar, A. (2002). A note on modelling tourism revenues in Croatia. Tourism Economics, 8(1), 103–109 [online]. Retrieved January 10, 2020, from https://journals.sagepub.com/doi/abs/10.5367/000000002101298016
Rowthorn, R. E., & Wells, J. R. (1987). De-industrialization and foreign trade. New York: Cambridge University Press.
Schubert, S., & Brida, G. (2009). Macroeconomic effects of changes in tourism demand: A simple dynamic model. Tourism Economics, 15, 591–613 [online]. Retrieved January 10, 2020, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1416135
Solow, R. M. (1957). Technical change and the aggregate production function. Review of Economics and Statistics, 39(3), 312–320 [online]. Retrieved 10 January 2020, from https://www.jstor.org/stable/1926047?seq=1#metadata_info_tab_contents
Spinthiropoulos, K., Garefalakis, A., Stiakakis, E., & Chatsivasileiadou, S. (2010, August 26–28). Financial development and economic growth: An empirical research about Greece-Cointegration Test. In Proceedings of International Conference on Applied Economics (ICOAE), National and Kapodistrian University of Athens, Athens.
Spinthiropoulos, K., Nikas, C., & Zafeirou, E. (2018a). Tourism and economic growth in Greece: An ARDL bounds testing approach in Kaldorian Framework. Acta Oeconomica. Index in Scopus (Accepted for publication).
Spinthiropoulos, K., Nikas, C., Zafeiriou, E., & Garefalakis, A. (2018b). Tourism and economic growth under heavy taxation: An empirical investigation for Greece. Interdisciplinary Journal of Economics and Business Law.
Szarowska, I.. (2013). Effects of taxation by economic functions on economic growth in the European Union. MPRA paper no. 59781. Munich: University Library of Munich [online]. Retrieved January 10, 2020, from https://mpra.ub.uni-muenchen.de/59781/
World Tourism Organization. (2017). UNWTO annual report 2016. Madrid [online]. Retrieved January 10, 2020, from https://www.e-unwto.org/doi/pdf/10.18111/9789284418725
World Travel and Tourism Council. (2017). Travel & tourism economic impact 2017. United Kingdom [online]. Retrieved January 10, 2020, from https://zh.wttc.org/-/media/files/reports/economic-impact-research/archived/countries-2017-old/unitedkingdom2017.pdf
Zortuk, M. (2009). Economic impact of tourism on Turkey’s economy: Evidence from co-integration tests. International Research Journal of Finance and Economics, 1(25), 231–239 [online]. Retrieved January 10, 2020, from https://www.researchgate.net/publication/285833323_Economic_impact_of_tourism_on_turkey%27s_economy_Evidence_from_cointegration_tests
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Spinthiropoulos, K., Nikas, C., Zafeiriou, E. (2020). Sector Analysis and Economic Growth in Greece: The Domination of Tourism over Other Sectors. In: Nikas, C. (eds) Economic Growth in the European Union. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-48210-7_12
Download citation
DOI: https://doi.org/10.1007/978-3-030-48210-7_12
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-48209-1
Online ISBN: 978-3-030-48210-7
eBook Packages: Economics and FinanceEconomics and Finance (R0)