Sectoral Production in Greece During 2010-2018

Abstract

The chapter econometrically estimates Greece's sectoral production in terms of labor and capital inputs from 2010 to 2018 and the (residual) sectoral multifactor productivity element in terms of technology features—the types of labor and capital—used. Everything being equal, based on the findings, projects undertaken to affect the post-pandemic recovery and economic development will yield better outcomes if they are carried out so as to bring more workers and investments in sectors where the two inputs have positive effects; reduce the use labor in sectors where the labor inputs are associated with negative effects or promote worker education accordingly; sell overseas older capital assets associated with negative effects on output or organize assets in ways that are more effective than in the past; and add new, technologically improved assets. The chapter also suggests that investing in certain sectors may be preferable on account of the production coefficients and depreciation rates. Overall, the approach developed may be of interest to analysts and policy makers elsewhere in the world.