Measuring regional economic efficiency: the case of Greek prefectures

Abstract

This paper, using Data Envelopment Analysis (DEA), measures for the first time the economic growth policies of the Greek prefectures. Based on the neoclassical model of growth it uses private and public investments and labour force as inputs and GDP per capita as output for the time period of 2003-2006. The results indicate that there are significant regional policies inefficiencies among the Greek prefectures. Additionally, growth inefficiencies within the 13 administrative regions are reported. Finally, the analysis provides benchmarks for policy evaluation and suggestions for region-based approaches to growth problems.