AN EVALUATION OF THE GREEK REGIONAL INCENTIVES POLICY, 1972-1987

ABSTRACT In this paper an evaluation of the Regional Development Incentives Policy in Greece is presented for the 1972-87 period. The main argument in this evaluation is that the incentives polity had limited impact on private investment decisions and, instead, facilitated existing trends in the sectoral composition and spatial distribution of private investment. The empirical evidence in support of tins argument indicates that subsidised investment did not prefer the sectors and regions where the incentives were stronger, while its sectoral and spatial distribution was similar to nonsubsidised investment. A case study for one of the problem regions confirmed these results and gave rise to questions about the appropriateness of the incentives policy for the Greek regional problem.