This paper examines the degree of business cycles synchronicity among Greek regions and investigates the determinants of the business cycle co-movements of output associated with the functional and spatial aspects of the integration process among the Greek regions. We analyse nearly 30 years (1980 through 2008) of data at the NUTSIII level (prefectures). We conclude that the prefectures are more synchronised with the NUTSII regions than they are at the national level, emphasising a regional (NUTSII) border effect. Moreover, the intensification of the integration process seems to diachronically affect the structural characteristics of the Greek regions and the geography of cyclical synchronisation. Our study reveals a two-stage integration in which we detected urbanisation economies in the first stage and localisation economies in the second stage. The metropolitan regions, apart from their prominent position in economic growth, show a confined level of business cycle synchronisation with the other regions, stressing Greece’s pattern of economic and structural dualism.
Fragmented Integration and Business Cycle Synchronization in the Greek Regions, Discussion Paper Series, 18(5): 83-106