The Comparative Advantage of Greece in the Era of Recession

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Submitted By lamgal
Words 4235
Pages 17
The comparative advantage of Greece in the era of recession
Lampros Gallos National and Kapodistrian University of Athens Athens, Greece lam.gal@hotmail.com

Abstract

The aim of this paper is to investigate the export behaviour of Greece and to identify its comparative advantage. Moreover, through the conclusions of the analysis, is investigated whether the export activity of the country coincides with its comparative advantage especially in the present circumstances, those of recession. Initially, we define the comparative advantage based on the approaches of Adam Smith, David Ricardo's and Heckscher-Ohlin. Furthermore we analyze the current situation of the country, Greece’s economic structure and its trade performance, mainly the exports. In addition we identify the elements of the Greek competitiveness and the results of the fiscal consolidation that Greece is undergoing. Having analyzed the definition of the comparative advantage and the data concerning Greece’s reforms we proceed in identifying Greece’s comparative advantage mainly in four different sectors. Firstly we identify the key factors making the touristic sector extremely profitable for the Greek economy; secondly we analyze the commercial shipping sector then the strategically position of the country and finally the competitive rates in which Greece seems to gain ground.

Keywords: comparative advantage, competitiveness, internationalisation, entrepreneurship, financial crisis.

1

Contents:

1. Historical and literature review. 2. Greece – Country Analysis: Reforms and fiscal consolidation.

2.1: Economic Structure and Performance of Greece.

2.2: Elements of Greek Competitiveness.

2.3: Fiscal Consolidation and its results. 2.3.1: GDP growth rate & Consumer Price Index. 2.3.2: Strong austerity measures and their results. 2.3.3: Driving down the deficit – Rebounding Greece

3.…...

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