Reevaluating Greece Growth Potential. An econometric Approach

Abstract

Econometric evidence from Public Investments in goods such as schooling illustrate a controversy. Especially when compared to similar studies in other parts of the world. Two decades back, results proved that investing in public schooling was highly imprinted onto the country’s economic growth rate. More recent data prove otherwise and challenge this hypothesis for the part that concerns the statutory provision. At the same time, the large enough available talent pool is itself a strength which can attract investment opportunities by receiving a proper, smart and robust pricing, not to mention the training.

Finally, we cast doubt on the notion that a strict financial adjustment program can induce sustainable development and boost economic growth. We introduce the idea that the Greek potential has to be reevaluated and discuss about calibrating the channels of knowledge transmission to the needs of the market and the trends for the future.

 Keywords: Government expenditures in education, Economic Growth, Time-series, Nonparametric.

JEL Codes: C14, C 22, C58, O38, O15, H52, C32.