Human capital, Competitive advantage, Economic policy
Abstract
Competitiveness has emerged as a major objective in firms' and slates' policies of the last decades. This is due to the fact that traditional commercial policy for exports increase proved ineffective in the long run. In this paper the economy of Northern Greece is examined in the framework of Porter's (1990) model. Our analysis shows that the simple Porter's model is not sufficient in explaining the case of Northern Greece economy, but rather the "generalised double model" (GDD) of Chang Moon el al. (1998) is the most appropriate framework. Based on the GDD model we argue that only one of the four determinants for the development of competitive advantage could be affected by the nationa policy. This state's intervention is necessary for the improvement of production factors and especially of the quality of human capital.
