Political Instability and Economic Growth: The Greek Economic Cycles in the 20th Century

Political instability seems to be wide spread across the Balkans, with the Greek case as being the one to experience a continuous turbulence. Modern Greece, as an independent national entity, came into being after an extended independence struggle against the Ottoman Empire, until the first decades of the 20^th century. This paper investigates the influence of political instability on Greek economic growth between 1919 and 2008. By using, modern Greece as a case study, this paper shows, that there is a strong link between political instability and economic growth whilst the type of the regime plays no role.  Additionally, this paper investigates the politics and policies interfered as a Greek ‘phenomenon’ which does not follow any of the European models.