Panagiotis Liargovas

Foreign Direct Investment and Real Exchange Rate Interlinkages

This paper examines theoretically and empirically the relationship between Foreign Direct Investment and the real exchange rate. It is found that in large countries with freely floating currencies, such as the USA, the UK and Japan, causality runs from the real exchange rate to FDI. These results are consistent with the predictions of models of financial behavior. Causality runs both ways in small countries with fixed or “quasi” fixed currencies, such as the EU countries. These results are consistent with models, which emphasize on trade integration. It is shown that a weaker euro will not have uniform effects on FDI inflows across the unified Europe.

Motivations of migrant entrepreneurship in Greece: a factor analysis approach

Purpose – The past decade has shown a remarkable growth in entrepreneurship among immigrants in Greece, while their contribution to Greek society is still clouded by issues of social integration, crime, exclusion, racism and discrimination. The purpose of this paper is to empirically identify the motivations that are responsible for migrant entrepreneurship in the case of Greece.Design/methodology/approach – The authors use the principal component factor analysis technique in order to investigate common factors that might explain underlying beliefs about the perceived variables. The research questionnaire includes open‐ended and closed questions to collect the necessary information in order to provide insights into a variety of critical factors which determine the start and existence of ethnic firms.Findings – It is found that the intention to become an entrepreneur depends on family survival needs, immigrant community ties, personality features or traits and market infrastructure and general conditions o...

Underground banking or hawala and Greece‐Albania remittance corridor

Purpose – The purpose of this paper is to study underground banking between Greece and Albania and provide policy makers with specific policy recommendations to reduce hawala, reduce remittances commissions and improve access of banking services to both remittance senders in Greece and beneficiaries in Albania.Design/methodology/approach – The authors measure loans to customers (non‐banks), total assets and net revenues from commissions, including remittances commissions, of a sample of 26 Greek commercial banks during 1996‐2004 and examine recent remittances commissions of the four largest Greek commercial banks and the Greek Postal Office.Findings – Results indicate that Greek commercial banks charge less for remittances services than Western Union, Eurogiro and hawala banking, although remittances are not a core business for them (loans to customers – non‐banks – are their core business).Practical implications – Practical solutions are: lowering remittances commissions to Greek Postal Office for low am...

Motivations and barriers of export performance: Greek exports to the Balkans

Foreign market entry can play a very significant role in a nation’s economic prosperity. There are essentially four principal means of foreign market entry: exporting, licensing, joint-venture partnering and wholly owned foreign investment. Exporting represents one of the most common entry modes to international markets. A country’s ability to compete successfully in world markets reflects its economic strength and marginal competence over other nations. Cavusgil, in integrating various export development strategies, identified five distinct stages: domestic marketing, pre-export stage, experimental involvement, active involvement and committed involvement. Exports can result directly or indirectly in a decrease in the unemployment rate and an increase of domestic production and economic growth. The process by which a firm demonstrates exporting behaviour is usually conceived as evolving through various stages. Greek exports in South-Eastern European countries (Balkans) are exceptionally high. Within the Balkans, the Greek export share has shown a significant increase in the last 15 years and has reached one of the first places in the ranking of the region’s leading exporters. The increased exports towards the neighbouring countries indicate a major change in the structure of Greek export activity over a short time. This increase comes in a period when Greek exports to EU markets have been declining. Furthermore, many Greek firms expanded into Balkan countries through foreign direct investment or participation in the construction of large infrastructure projects. The majority of these investment initiatives are concentrated in the fields of trade, finance services and manufacturing. For example, Greek firms are the region’s biggest investors in the telecommunications sector. In the context of our study, the case of Greek exporting firms is of particular interest since it exemplifies very well a situation in which exporters have to decide on the level of involvement and follow strategies in regions perceived to be close at the physical or psychological distance. Greek exporting firms would consider Eastern Europe as physically closer than other

Regional parameters and solar energy enterprises

Purpose – The purpose of this paper is to investigate the relationship between regional factors and investment attractiveness of solar energy production. The aim is to create a rank order of the Greek regions based on their investment attractiveness. Design/methodology/approach – In this research, the analytic hierarchy process (AHP) was applied in its group choice approach combined with a purposive sampling of experts from the business, governmental and research fields. Findings – A rank order of the regions was developed related to their investment attractiveness based on the experts’ sampling and the specific criteria that were set. Analyzing the criteria, it was found that general macroeconomic performances of the regions are of low priority, while the ones related to the entrepreneurial development such as solar irradiation and land availability are of high priority. Practical implications – This work is practically applicable, as it conduces to the management of companies operating in the solar ener...

Economic Growth and the Environment: The European Union Case

One of the most debatable issues in Economics is the relationship between economic growth and the environment. From the policy point of view, what is important is the formulation of the best-suited policies for both growth and the environment. But the implementation of regional and environmental policies requires the existence of methods for evaluating the economic and environmental situation in each country. This paper offers such a method and applies it in the case of European Union (EU) countries member-states by positioning them in an Environmental Quality-Income map.

SMEs and Green Growth: The Effectiveness of Support Mechanisms and Initiatives Matters

The aim of this chapter is to examine the way in which small- and medium-sized enterprises (SMEs) adapt their financial and operational planning in order to develop green entrepreneurship. This is examined through two different practices which may be followed by companies: policies and strategies that lead enterprises to energy upgrade and policies and strategies relating to environmental protection. This chapter draws upon the dataset from 100 Greek SMEs. The process of data collection was conducted by delivering questionnaires to the sample of companies in question. The novelty of this research, in comparison with other surveys, is that the level of adopting green strategies is approached not only in the fields of energy or environmental efficiencies but also attempts to introduce techno-economic parameters with related items in the questionnaires delivered to the SMEs. Hence, a more thorough analysis for the greenness of Greek SMEs is discussed based on 10 (i.e. techno-economic) research hypotheses. The results indicate that the SMEs should be supported more effectively by the Greek government and European Union through funding initiatives. The funding initiatives do not have the expected results so far towards this direction. However, it seems that the SMEs realize the importance of green strategies as they believe the consumers are willing to pay more for green products.

A new Europe 2020 strategy adopting an enhanced regional aproach

The European transition to a sustainable economy requires a radical change in the way that European Union targets are set. In particular, targets concerning the environment, energy and entrepreneurship (whose relationship is inseparable) should not only be determined at national level, but at regional level too. After all, the environment and energy are the resources that create sustainable economic activity. In this Policy & Planning Brief, we argue that regional governments should acquire more responsibilities and obligations to achieve and operationalize the aims of Europe 2020 (Commission of European Communities, 2008a). Consequently, the effectiveness of regional governments should come to the fore as an optimal level for delivering sustainable development. In addition, competition among regions regarding sustainability could be the key for driving green economic growth. As the Organisation for Economic Co-operation and Development (OECD) (2012) highlights, central government alone cannot ensure a green transition; instead, regions and cities can act as key nodes providing political solutions for green growth and innovation. There are six key reasons for shifting the focus from national to regional level within Europe 2020.

Regional determinants of manufacturing start-ups in Greece: evidence on the effect of agglomeration economies

This article analyses the regional determinants of manufacturing start-up ratios in Greece. Emphasis is placed on the effect of agglomeration economies, which are distinguished between urbanization and localization economies. The data refer to the establishments realized in the 51 Greek prefectures (NUTS III level) in 2005. Results indicate that negative urbanization economies prevail. Localization economies in the form of positive Marshallian and negative Jacobian externalities are observed and constitute important determinants of start-up ratios. Results regarding the effect of other factors such as expected demand and profit, cost and human resources factors are as anticipated.

Export motivations and barriers: a case study of Greek firms exporting to four south-eastern European countries

Foreign market entry can play a very important role in a nations economic prosperity. This study concentrates on the evaluation of specific characteristics of the export decision process and is focused on factors that stimulate firms to export or inhibit them from doing so. The analysis is accomplished by using a sample of 40 listed firms on the Athens Stock Exchange involved in making exports to four South-Eastern European (SEE) countries (the Balkans): Albania, Bulgaria, the Former Yugoslav Republic of Macedonia (FYROM) and Romania. The research is based on a questionnaire which has provided several insights into export motivations and barriers. It uses the principal component factor analysis technique in order to investigate common factors that might explain the underlying beliefs about the perceived variables.