Kaldorian approach to Greek economic growth

In the last 30 years, Greece has experienced a rapid of economic growth which has transformed the economy and enable it to become a member of the EEC. Specifically Greece transformed itself from an agricultural economy with virtually no industrial base to an economy with a significant industrial sector and consequently a relatively high income per capita. One can explain this on the lines of a Kaldorian framework. In this paper we provide an outline of Kaldor's growth model and test its relevance to the economic experience of Greece during the 1967–1988 period. The empirical results suggest that the model can adequately explain the development in the economy to a considerable degree.