Investigating structural changes in the Greek economy in the period of economic crisis using input - output analysis

Abstract

The structural features and weaknesses of the Greek economy are mentioned in the literature among the key factors that caused or did not allow the rapid exit from the economic crisis. The effectiveness of interventions aimed at stimulating economic growth largely depends on an understanding of the general characteristics of the economy and, in particular, the interconnections of productive sectors. The intensity of the relationships that develop between the productive sectors of an economy are critical to the prospects for growth and the expansion of productive activity brought about by development actions. A satisfactory "framework" for describing the intersectoral relationships of an economy is input-output tables. This article uses the input - output tables for 2010 and 2015 to estimate the key changes that have occurred in the Greek economy during the above period. Initially, appropriate indicators are proposed that use the input-output tables and illustrate key features of the economy, then calculate the values of these indicators and evaluate the results of the calculations. Finally, conclusions and strategy proposals are formulated for achieving economic growth resulting from the preceding analysis.