Improving competitiveness and trade balance of Greek economy: a coopetitive strategy model

David, Carfì and Daniele, SCHILIRO' (2014): Improving competitiveness and trade balance of Greek economy: a coopetitive strategy model. Published in: Journal of Applied Economic Sciences , Vol. IX, No. N.2 (July 2014): pp. 211-220.

Abstract

In this work, we propose a coopetitive model applied to the Greek crisis, aimed both at improving the competitiveness of the Greek productive system and rebalancing the current account balance of the country. Our model of coopetition (based on normal form game theory) is conceived at a macro level, wherein there are two players: Greece and SNC (the Surplus Northern Countries of the euro area). We suggest a model that looks for a win-win solution. The win-win solution entails a cooperative bi-strategy in which SNC should contribute to re-balance its trade surplus with respect to Greece and, in addition, SNC should provide a certain amount of foreign direct investment (FDI) to improve the competitiveness and the growth in Greece. Thus we find a transferable utility and properly coopetitive solution, convenient for all the players.

• Item Type: MPRA Paper
• Language: English
• Keywords: Games and economics; coopetition; cooperation; competitiveness; trade balance; foreign direct investment; Greek economy
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C71 - Cooperative Games; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C78 - Bargaining Theory ; Matching Theory; F - International Economics > F2 - International Factor Movements and International Business; F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms ; International Business; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy ; Factor Movement Policy ; Foreign Exchange Policy

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