39 research outputs found
Urban growth and productivity: the case of Greece
The present paper reports an attempt to estimate the role of urbanisation economies in Greek industry. Using a flexible form of production function obtained from a Taylor-series expansion of a polynomial it is estimated that the labour productivity of the manufacturing sector is five per cent higher with each doubling of urban population. The substantial advantages to urban production seem to be at the heart of the urbanisation process that accompanied industrialisation in Greece. The policy implications are that decentralisation policies may be justifiable on regional equity but not on economic efficiency grounds. Selection and promotion of a few urban centres in each region would be a more successful regional policy.urbanisation; labour productivity; manufacturing
Corporate performance: does ownership matter? A comparison of foreign - and domestic - owned firms in Greece and Portugal
The paper investigates whether multinational corporations (MNCs) operating in Portugal and Greece perform differently than domestic firms using two samples. The first contains 2651 and the second 523 firms operating in Greece in 1997 and Portugal in 1992 respectively. Departures from normality of firms' profitability motivated the adoption of the robust technique of quantile regression. The estimation results suggest that ownership ties do not make a significant difference with respect to performance of firms operating in Portugal. Results were similar for firms operating in Greece and only when firms in the upper quantiles of gross profits were compared, MNCs were found to significantly perform better than domestic firms. It is probably because MNCs have to compensate for their liability of foreigness that in spite of their technological advantages they cannot persistently outperform their domestic rivals.multinational corporations, profitability, manufacturing industry Quantile Regression
Corporate performance : does ownership matter? A comparison of foreign - and domestic - owned firms in Greece and Portugal
The paper investigates whether multinational corporations (MNCs) operating in Portugal
and Greece perform differently than domestic firms using two samples. The first contains
2651 and the second 523 firms operating in Greece in 1997 and Portugal in 1992
respectively. Departures from normality of firms' profitability motivated the adoption of
the robust technique of quantile regression. The estimation results suggest that
ownership ties do not make a significant difference with respect to performance of firms
operating in Portugal. Results were similar for firms operating in Greece and only when
firms in the upper quantiles of gross profits were compared, MNCs were found to
significantly perform better than domestic firms. It is probably because MNCs have to
compensate for their liability of foreigness that in spite of their technological
advantages they cannot persistently outperform their domestic rivals.Fundação para a Ciência e a Tecnologia (FCT
Determinants of non-performing loans in Greece: the intricate role of fiscal expansion
Following the financial and debt crises in the euro area and the delays in formulating a cohesive policy response, Greek banks faced serious problems with the increase in nonperforming loans (NPLs) being the most threatening. In this study, we attempt to empirically investigate the determinants of NPLs in the Greek banking sector, using quarterly aggregate data for the period 2003Q1-2020Q2 and the autoregressive distributed lag (ARDL) bounds testing approach. We find that NPLs are determined mostly by factors related to macroeconomic conditions in Greece during the period under investigation, rather than by bank-related factors. Of particular interest is the case of government debt, which is found to exert a significant and positive long-term impact on NPLs irrespective of some short-term dynamics that appear to provide a temporary relief. The fiscal balance is also found to exert a negative long-term effect, justifying the quest for surpluses post-crisis. As debt accumulation is a policy followed by most countries in order to stabilize economies hit by the COVID-19 crisis, its long-term effects on the financial system should be taken into account and institutional measures introduced to face the new risk
Bank Lending Margins in the Euro Area: The Effects of Financial Fragmentation and ECB Policies. LEQS Discussion Paper No. 105/2016 February 2016
In the present paper we study the determinants of the margins paid by euro-area nonfinancial
corporations (NFCs) for their bank loans on top of the rates they earn for their
deposits (bank lending margins). We use panel VAR techniques, in order to test for causality
relationships and produce impulse response functions for eleven euro-area countries from
2003:1 to 2014:12. The countries are separated into two groups (distressed and nondistressed),
in order to examine for heterogeneities in the relationships between lending
margins; the period is also separated with reference to the peak of the global financial crisis
(before and after the collapse of Lehman in September 2008). We find that significant
heterogeneities existed even before the global financial crisis and remained in its aftermath,
although the magnitude and the direction of the effects exercised by the explanatory variables
have changed. Furthermore, apart from finding that market concentration and the prudence
of banks’ management increase the lending margins NFCs pay for their loans, there is
evidence of substitution effects between financing obtained from banks and corporate bond
markets. The provision of ample liquidity from the ECB, in the aftermath of the global
financial crisis was found to be effective only for the core countries, suggesting that further
policy actions are needed in order to reduce the fragmentation of bank lending and promote
financial integration to the benefit of the euro-area real economy
Urban growth and productivity: the case of Greece
The present paper reports an attempt to estimate the role of urbanisation economies in Greek industry. Using a
flexible form of production function obtained from a Taylor-series expansion of a polynomial it is estimated that the labour productivity of the manufacturing sector is five per cent higher with each doubling of urban population. The substantial advantages to urban production seem to be at the heart of the urbanisation process that accompanied industrialisation in Greece. The policy implications are that decentralisation policies may be justifiable on regional equity but not on economic efficiency grounds. Selection and promotion of a few urban centres in each region would be a more successful regional policy
Regional policy and investment behaviour: The case of Greece, 1971-1982
The present paper reports an attempt to evaluate the relative effects of regional policy on investment in Greek manufacturing industry during 1971-82. A generalized neoclassical model of investment behaviour is used allowing for separate estimates of the effects of different policy instruments. Both regional investment incentives and infrastructure expenditures were found to exert a significant influence on capital formation. Simulations with alternative policy cornbinations showed that if incentives were accompanied by more equally distributed infrastructure expenditures the cost of the policy would be the same but its effects would be enhanced: an equal amount of investment would be created with a fairer regional distribution
Financing economic activity in Greece: past challenges and future prospects
We examine the existence of a feedback loop between the resilience of the financial sector and Greek economic activity. A sequence of structural VARs is employed using data for bank credit, liquidity, capital, asset quality and private demand in 2001-2018in two data sets. One in monthly frequency with which we examine the determinants of credit provision by Greek banks, and another in quarterly frequency with which we examine the finance-growth nexus for the Greek economy. We find that (a) the deterioration in the quality of Greek banks’ balance sheets affected negatively the provision of credit to the economy, (b) central bank liquidity and recapitalisations of Greek banks provided only a partial remedy and (c) the decline in credit significantly weakened economic activity. Also, we find that there is a role for market financing of the economy but this cannot substitute for the predominantly bank-based financing. Therefore, as the Greek economy starts bouncing back Greek banks have an important role to play, first by solving the high NPLs problem and providing the necessary credit and second by improving the efficiency of capital allocation towards a sustainable growth model