Investing in Greece: framework and analysis.

Abstract

Greece has entered in a period with major similarities with the historic period of “Great Depression”. There is huge unemployment, severe economic crisis, austerity measures, fiscal instability and long term recession. Under theses conditions, except of the necessary reforms, investment is the vaulting horse which can bring the country back to prosperity. This major economic process is the subject of this master thesis, the framework and analysis of investment in Greece. The analysis is implemented by an internal research of the structural framework and an external research of the political, economic, social and technological forces that contribute to the determination of the investment environment. The analysis shows that the structural framework such as Investment Law, the Fast Track, National Strategy Reference Framework, “Invest in Greece” Agency and privatisation program play a significant role but not the crucial one. The major forces are the macroeconomic environment, inefficient public administration, bureaucracy, and access to financing. On the contrary, Greece is placed in an important geopolitical position, with inhabitants that work very hard, under the international attention and foreign rescue packages, and major willingness for reforms and growth. At this point the thesis raises the point for further research in identifying the economic sectors that are attractive for foreign investment and can exploit the national competitive advantage.