Table of Contents
Economics Research International
Volume 2014, Article ID 385038, 6 pages
http://dx.doi.org/10.1155/2014/385038
Research Article

Regional Convergence in Greece (1995–2005): A Dynamic Panel Perspective

Department of Economics, Athens University of Economics and Business, 76 Patission Street, 104 34 Athens, Greece

Received 4 February 2014; Revised 21 May 2014; Accepted 22 May 2014; Published 25 June 2014

Academic Editor: Laura Gardini

Copyright © 2014 Mike Tsionas et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper discusses the issue of regional convergence in Greece during the period 1995–2005. Following the theoretical concept of Barro and Salla-i-Martin, 1990 ( - and -convergence concepts), several tests are conducted to test for conditional or unconditional convergence across Greek regions including GMM estimation of Barro regressions. The results indicate absence of convergence across NUTS II regions while there is evidence of convergence at prefectural level (NUTS III). The effect of agriculture industry and services sector is examined and services are found to have significant impact on growth and convergence. Finally, we examine the effect of the implementation of the European funding programs in some detail.