Structural Changes and Leakages in the Greek Economy

The main goal of this paper is to present an imput-output framework for the discussion of the consequences of the structural changes in the Greek economy from the year 1994 to 2005 and the leakages resulting from international trade. The use of Greek input-output tables of 1994, 1999 and 2005 allow us to assess how structural changes experienced by the economy influence the growth potential and additionally evaluate the importance of international trade in the economy's production process. The methodology of factor decomposition and the analysis of industrial linkage effects are employed. The results point out that there was a realtive switch from agriculture to manufacturing and services during the period 1994-2005. In the interaction between structural linkages among different sectors and leakages steaming from international trade, it appears to be a positive relationship between linkages and leakages in backward and forward cases.