Overall economic performance of Greece and the deindustrialization thesis

Abstract

The question of whether a reduction in manufacturing activity leads to deindustrialization has caused much debate in the literature. An interesting case to examine is Greece. This paper argues that the country had presented two economic phases over time. A general survey for the performance of the economy and industry, based on selected data and computed indices is combined with econometric analysis to investigate the main causes of the industrialization process and whether Greece has been a victim of deindustrialization. The main conclusion of the study is that evidence is provided for a relative decline in manufacturing during phase II. Hence, new industrial policies are needed to reverse negative trends.