Title: Inward and outward FDI and the shadow economy during the Greek Economic Crisis

Authors: John Marangos; Eirini Triarchi; Themis Anhtrakidis; Alexandra Dimitriadou; Angeliki Nestoroudi

Addresses: Department of Balkan, Slavic and Oriental Studies, University of Macedonia, Thessaloniki, Greece ' Department of Accounting and Finance, University of Ioannina, Greece; Department of Balkan, Slavic and Oriental Studies, University of Macedonia, Thessaloniki, Greece ' Department of Balkan, Slavic and Oriental Studies, University of Macedonia, Thessaloniki, Greece ' Department of Economic and Regional Development, Panteion University, Greece ' Politics and Economics of Contemporary Eastern and South-Eastern Europe, Department of Balkan, Slavic and Oriental Studies, University of Macedonia, Thessaloniki, Greece

Abstract: The purpose of the paper is to discover the bearing of inward and outward FDI and the shadow economy on the Greek Economic Crisis (GREC) in reviving the shattered economy. Students and researchers of the global economic crisis will benefit from this novel approach in exploring the GREC from the inward and outward FDI and the shadow economy perspective. The paper establishes that inward and outward FDI and FDI stock as a percentage of GDP, after a substantial period of ups-and-downs, was on the road to recovery as the economy was coming out from the crisis. The shadow economy in Greece exhibits a paradoxical evolution, as it substantially declined due to the sharp reduction in incomes that reduced the demand for activities in the shadow economy. Economic policymakers need to exploit the recovery of inward and outward FDI and this once in a lifetime opportunity of the substantial reduction of the shadow economy.

Keywords: inward FDI; outward FDI; shadow economy; Greece; Greek crisis; European crisis; global financial crisis.

DOI: 10.1504/IJEBR.2022.120654

International Journal of Economics and Business Research, 2022 Vol.23 No.2, pp.210 - 228

Received: 18 May 2020
Accepted: 17 Nov 2020
Published online: 31 Jan 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article