Article

 

Modeling economic growth policy interaction with local government reform: Evidence from Eastern Macedonia and Thrace (p.39-67)

by

George Sarafopoulos, Democritus University, Greece

Konstantinos J.Hazakis, Democritus University, Greece

Panagiotis G. Ioannidis, Democritus University, Greece

Keywords : Local economic growth, Cooperation, Institutional reform, Game theory

JEL classification : R11, C71

Abstract

The paper studies the process of local economic growth, in the period just after the implementation of a local government institutional reform. Cooperation is a basic determinant for the upgrading of local economic activity especially for lagged regions. The methodology that is used in order to analyse the options of local development, is game theory. The analytical level of the game is Eastern Macedonia and Thrace (NUTS II), a region that confronts problems of uneven development. According to the results of the game, social cohesion and effective implementation of reform are considered key elements for local economic growth.