Costas Katrakilidis, Ph.D. and Persefoni Tsaliki, Ph.D. Economics, Aristotle University of Thessaloniki, 156 Egnatia Str, Thessaloniki, 54006, Greece
Economic Development and Growth in Post War Greek Economy:
a Kaldorian Approach
by
Katrakilidis Constantinos and Persefoni Tsaliki
Department of Economics
Aristotle University of Thessaloniki,
Tel.: ++30 2310 996447 and 997156
e-mail: katrak@econ.auth.gr
ptsaliki@econ.auth.gr
Abstract
The purpose of this paper is to subject into empirical testimg the validity of the Kaldorian approach to growth and development in Greece during the years 1950-2008. In so doing, we examine the three laws outlined in Kaldor’s growth model and test their relevance to the economic experience of Greece which, during the post war period, transformed itself from an agricultural into an economy with a significant industrial sector. Also, we employ advanced econometric techniques to analyse the long-run and short-run relationships among the variables, as well as to detect the possible structural breaks in the time series. The empirical results suggest that the Kaldorian framework can adequately explain the developments in the economy to a considerable degree. However, evidence can be found indicating that in Greece there is more than one leading sector.
Key words: Economic Growth, Kaldor’s Laws, Industrialization, Leading Sector
Jel Classification: O40, O14, E12, C22