INVESTIGATING THE "COMPLEMENTARITY HYPOTHESIS" IN GREEK AGRICULTURE: AN EMPIRICAL ANALYSIS
2017
Katrakilidis, Constantinos P. | Tabakis, Nikolaos M.
This study investigates determinants of private capital formation in Greek agriculture and tests the "complementarity" against the "crowding out" hypothesis using multivariate cointegration techniques and ECVAR modeling in conjunction with variance decomposition and impulse response analysis. The results provide evidence of a significant positive causal effect of government spending on private capital formation, thus supporting the "complementarity" hypothesis for Greek agriculture.
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