Ekonomia The journal of the
Cyprus Economic Society
(formerly The Cyprus Journal of Economics)

Volume 7, No 1, June 1994


Why is Unemployment so High Almost Everywhere?
ROBERT M. SOLOW

The Growth of the Public Sector: Tests of Alternative hypotheses with Data from Greece
THEODORE GEORGAKOPOULOS and JOANNIS LOIZIDES

This paper tests alternative hypotheses of government size and growth using data from Greece, a country with unusual economic and political changes in the post-war period. Simple Wagner-type models, where the ratio of government expenditure to income is regressed on per capita income, perform very poorly, whereas structural Wagner-type models, where industrialisation and urbanisation appear as explanatory variables, perform better. Results improve substantially when population variables are added to the regressors. The demand-for-public-goods model does not give entirely satisfactory results. Dynamic models perform much better than static ones, which clearly shows that government expenditure is affected by more factors than those allowed for in simple static models.

Manufacturing Garments in the Greek Countryside: A Case Study of the Contemporary Sub-Contracting Regime in Polikastro-Peonia, Macedonia
COLIN SIMMONS and CHRISTOS KALANTARIDIS

Drawing on the experience of a region located in northern Greece which achieved very rapid rates of growth of garment manufacture, we argue that there has been a renaissance of an all too familiar mode of industrialisation--one based upon paring costs and evading official imposts. Through a series of sub-contracting arrangements and via a network of agency houses, production was diffused from Germany, to the Greek periphery; and then subsequently as the pattern of costs altered, from the peripheral metropolis, Thessaloniki, to the surrounding towns and countryside. By drawing heavily upon local resources the garment enterprises of Polikastro-Peonia were incorporated into a wider industrial complex.

Is there a Greek-Turkish Arms race? The view from Athens
CHRISTOS G.KOLLIAS

This paper examines the external security factors that may influence defence spending in Greece vis-a-vis her neighbour Turkey. It suggests indices of military capabilities that may assist in the empirical investigation of the weapons build up between the two countries.

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