Greek Regional Economies∗

Abstract. This article examines the nature of interregional competition and complementarity in Greece. The methodological framework deviates from the Dendrinos-Sonis model as applied in previous studies with the same scope. In fact we show that for different choices of the numeraire region one may get different outcomes for the interregional dynamics. Our methodology is close to the one adopted in Marquez and Hewings (2003) and Marquez et al. (2005) that is closely connected to the recently developed econometric methods for testing Granger-causality in cointegrated systems. We apply it to NUTS I and NUTS II level regions