Chaido Dritsaki

Causal Nexus between Economic Growth, Exports and Government Debt: The case of Greece☆

Abstract This paper examines the relationship between economic growth, exports and government debt of Greece over the period 1960-2011. We investigate this relationship using the vector error correction models (VECM) and we employ Granger causality technique in order to explore the presence of causality among these variables. The results show that both short and long run relationships exist among these variables. Specifically, the results show that there is a unidirectional Granger causality that runs from exports to economic growth as well as from economic growth to government debt, whereas there is no short run causal relationship between exports and government debt. In the long run, the results show that there is a unidirectional Granger causality that runs from economic growth to government debt.

A panel data approach to the demand for money in Bulgaria and Romania

This article aims to investigate the relationship between real money, real Gross Domestic Product (GDP) and the nominal short-term rate of interest in the two new European Union (EU) member states. In pursuit of this objective, the tests of panel cointegration and Fully Modified Ordinary Least Squares (FMOLS) are conducted by using panel data. The data used in this study consist of annual data during period 1990 to 2008. The panel cointegration results confirm a long-run relationship between real money, real GDP and the nominal short-term rate of interest. Our empirical results also show that real GDP elasticity is 0.739 and nominal short-term rate of interest elasticity is −0.013 for the panel of the two countries.

Inflation, Unemployment and the NAIRU in Greece

Abstract The current paper examines the Phillips Curve approach for Greece using annual data from 1980 until 2010. Phillips Curve approach helps in examining the relationship between inflation and unemployment. The results show that there is a long run and causal relationship between inflation and unemployment for the aforementioned period. Finally, the impulse responses applied for the 10-year forecasting, suggest that shocks in inflation rate cause a reduction on unemployment index for the first years, following by a slight rise for the remaining years under examination.

Phillips curve inflation and unemployment: an empirical research for Greece

The relationship between inflation and unemployment was first introduced in 1958 by Phillips who found a negative relationship between unemployment and money wage growth in the UK. However, this relationship appeared to become unstable in many countries over the 1970s. This paper investigates the relationship between inflation and unemployment in Greece using annual data from 1980 until 2010. To examine the long-run relationship for the case of Greece we use the cointegration test applying the Johansen (1988) maximum likelihood procedure while Granger causality test is obtained by the vector autoregression (VAR). The results show that there is a long-run and causal relationship between inflation and unemployment for the aforementioned period. Finally, the impulse responses applied for the 10-year forecasting, suggest that shocks in inflation rate cause a reduction on unemployment index for the first years, following by a slight rise for the remaining years under examination.