THE DEPENDENCY OF THE GREEK SOFTWARE INDUSTRY ON THE PUBLIC INVESTMENT PROGRAM OF GREECE

Abstract

The dependency of the Greek Software Industry (GSI) sector on the Public Investment Program (PIP) of Greece and on certain macroeconomic and sector-specific indices is investigated together with the prospect of expansion of GSI to foreign markets. The main characteristics, a brief historical background and an analysis of the GSI Sector are presented. On the other hand, PIP along with its development over the last fifteen years, has been in incremental relation with the Community Operational Frameworks of the EU. An econometric model is presented that attempts to estimate the dependency of the software sector turnover upon PIP and the following indices: gross domestic product, disposable income, average labor cost, interest rate and change in broadband relations. The process is described in detail and the results show the statistical significance of the independent PIP variable together with seasonality, as the main factors of dependence of the software sector turnover. The model may be further useful to decision making and economic policy regarding the development of the Greek software sector. Finally, after a short description of the current macroeconomic environment, the prospects of expansion of the Greek Software Industry to foreign markets are considered and the most important growth factors, according to a recent survey among sector executives, are presented.