Tax incentives, discriminatory factor prices and the regional economic problem: the case of Greece

Thomas A. Anastassiou ()
Additional contact information
Thomas A. Anastassiou: Department of Business Administration, Athens University of Economics and Business, Greece

Review of Applied Socio-Economic Research, 2012, vol. 3, issue 1, 4-13

Abstract: In this article an appraisal of the Greek regional incentive provisions enacted in the past is attempted. At a first stage, the exposition of some theoretical arguments, that should be followed in the planning of every regional incentive process, and which are very well founded, is given. These theoretical arguments are derived from a geometric and algebraic exposition of the regional problem. At a second stage, the Greek regional incentive structure is reviewed to see whether it was in accordance with the powerful theoretical arguments presented. It was shown that no proper consideration was given to the importance of labor subsidies as a means for the solution of the regional unemployment problem, while capital cost differentials existed to an extensive degree. A shift of investment then to developing areas was found, which could have contributed to the provision of regional investment subsidies. But it was indicated that capital intensive industries were those that had caused the shift and thus investment incentive provisions did not succeed in resolving the regional unemployment problem.

Keywords: tax incentives; regional economics; discriminatory factor prices (search for similar items in EconPapers)
JEL-codes: R58 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://reaser.eu/RePec/rse/wpaper/3_Rev3_Anastassiou_TaxIncentives.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rse:wpaper:v:3:y:2012:i:1:p:4-13

Access Statistics for this article

Review of Applied Socio-Economic Research is currently edited by Ruxandra Vasilescu

More articles in Review of Applied Socio-Economic Research from Pro Global Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Manuela Epure ().