Debt Crisis and Economic Development in Modern Greece: An Alternative Analysis Based on New Institutional Economics
Dr. Ioannis-Dionysios Salavrakos

The intellectual aspiration of the paper is to twofold. First the paper aims to highlight that the traditional theories of economic development are not applicable to the case of the Greek economy. Furthermore it demonstrates that the debt crisis problem is not one which appeared in 2009 but it is a constant problem for the Greek economy. Using the theoretical tool of New Institutional Economics the paper points out that the Greek economy has experienced an institutional problem throughout the 1830-2013 period. This is associated with a complex political and social evolution which created many obstacles throughout the period. These obstacles (state bureaucracy, complex legal framework, quality of labor force) continue until the current era and create barriers to economic development and establish the preconditions for a high debt.

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